REGULATIONS  NO.  6  :  :  :  REVISED  OCTOBER  8,  1909 

UNITED  STATES  INTERNAL  REVENUE 


Regulations  and  Instructions 

•ms  'K',  u'  n 


concerning 


Tax  on  Fermented  Liquors 


UNDER  THE  REVISED  STATUTES  OF  THE  UNITED 
STATES  AND  SUBSEQUENT  ACTS 


October  8,  1909 


WASHINGTON 
GOVERNMENT  PRINTING  OFFICE 
1909 


(Regulations,  No.  6.  Revised  October  8, 1909.) 

REGULATIONS  AND  INSTRUCTIONS 

CONCERNING  THE 

MANUFACTURE,  REMOVAL  OF,  AND  TAX  ON  FERMENTED  LIQUORS, 
UNDER  THE  UNITED  STATES  REVISED  STATUTES  AND  SUBSEQUENT 
ACTS. 


Treasury  Department, 

Office  of  tiie  Commissioner  of  Internal  Revenue, 

Washington,  D.  C.,  October  8,  1909. 

TAX  ON  FERMENTED  LIQUORS. 

Section  3339,  Revised  Statutes  of  the  United  States,  as  amended, 
provides  that — 

There  shall  be  paid  on  all  beer,  lager-beer,  ale,  porter,  and  other 
similar  fermented  liquors,  brewed  or  manufactured  and  sold,  or  stored 
in  warehouse,  or  removed  for  consumption  or  sale,  within  the  United 
States,  by  whatever  name  such  liquors  may  be  called,  a  tax  of  one  dollar 
for  every  barrel  containing  not  more  than  thirty-one  gallons ;  and  at  a 
like  rate  for  any  other  quantity  or  for  any  fractional  part  of  a  barrel. 
In  estimating  and  computing  such  tax,  the  fractional  parts  of  a  barrel 
shall  be  halves,  thirds,  quarters,  sixths,  and  eighths;  and  any  frac- 
^  tional  part  of  a  barrel,  containing  less  than  one-eighth,  shall  be 
accounted  one-eighth;  more  than  one-eighth,  and  not  more  than 
one-sixth,  shall  be  accounted  one-sixth;  more  than  one-sixth,  and 
not  more  than  one-fourth,  shall  be  accounted  one-fourth;  more  than 
one-fourth,  and  not  more  than  one-third,  shall  be  accounted  one- 
third;  more  than  one-third,  and  not  more  than  one-half,  shall  be 
accounted  one-half;  more  than  one-half,  and  not  more  than  one 
barrel,  shall  be  accounted  one  barrel;  and  more  than  one  barrel, 
and  not  more  than  sixty-three  gallons,  shall  be  accounted  two 
barrels,  or  a  hogshead.  The  said  tax  shall  be  paid  by  the  owner, 
agent,  or  superintendent  of  the  brewery  or  premises  in  which  such 
fermented  liquors  are  made,  and  in  the  manner  and  at  the  time  here¬ 
inafter  specified :  Provided,  That  in  lieu  of  or  in  addition  to  the  pres¬ 
ent  requirements  of  law  in  that  respect,  all  stamps  used  for  denoting 
the  tax  upon  fermented  liquors  or  other  taxes  may,  in  the  discretion 
of  the  Commissioner  of  Internal  Revenue,  be  canceled  by  perfora¬ 
tions  to  be  made  in  such  manner  and  form  as  the  Commissioner  may 
by  regulations  prescribe. 


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TSL 


3 


4 


TAX  ON  FERMENTED  LIQUORS. 


For  convenience  of  reference,  legislation  of  recent  years  affecting 
the  rate  of  tax  on  fermented  liquors  is  given  below: 

[Act  of  June  13, 1898  (30  Stat.,  448).] 

Section  1.  That  there  shall  be  paid,  in  lieu  of  the  tax  of  one  dollar 
now  imposed  by  law,  a  tax  of  two  dollars  on  all  beer,  lager  beer,  ale, 
porter,  and  other  similar  fermented  liquors,  brewed  or  manufactured 
and  sold,  or  stored  in  warehouse,  or  removed  for  consumption  or  sale, 
within  the  United  States,  by  whatever  name  such  liquors  may  be 
called,  for  every  barrel  containing  not  more  than  thirty-one  gallons; 
and  at  a  like  rate  for  any  other  quantity  or  for  the  fractional  parts  of 
a  barrel  authorized  and  defined  by  law.  And  section  thirty-three 
hundred  and  thirty-nine  of  t^^Revised  Statutes  is  hereby  amended 
accordingly:  Provided ,  Thata  discount  of  seven  and  one-half  per 
centum  shall  be  allowed  upon  all  sales  by  collectors  to  brewers  of  the 
stamps  provided  for  the  payment  of  said  tax:  Provided  further , 
That  the  additional  tax  imposed  in  this  section  on  all  fermented 
liquors  stored  in  warehouse  to  which  a  stamp  had  been  affixed  shall 
be  assessed  and  collected  in  the  manner  now  provided  by  law  for  the 
collection  of  taxes  not  paid  by  stamps.  *  *  * 

Sec.  51.  That  this  act  shall  take  effect  on  the  day  next  succeeding 
the  date  of  its  passage,  except  as  otherwise  specially  provided  for. 

[Act  of  March  2,  1901  (31  Stat.,  938).] 

Section  1.  That  section  one  of  the  act  entitled  “An  act  to  provide 
ways  and  means  to  meet  war  expenditures,  and  for  other  purposes,” 
approved  June  thirteenth,  eighteen  hundred  and  ninety-eight,  is 
hereby  amended  so  as  to  read  as  follows: 

“That  there  shall  be  paid,  in  lieu  of  the  tax  of  one  dollar  now  im¬ 
posed  by  law,  a  tax  of  one  dollar  and  sixty  cents  on  all  beer,  lager 
beer,  ale,  porter,  and  other  similar  fermented  liquors,  brewed  or  man¬ 
ufactured  and  sold,  or  stored  in  warehouse,  or  removed  for  consump¬ 
tion  or  sale,  within  the  United  States,  by  whatever  name  such  liquors 
may  be  called,  for  every  barrel  containing  not  more  than  thirty-one 
gallons ;  and  at  a  like  rate  for  any  other  quantity  or  for  the  fractional 
parts  of  a  barrel  authorized  and  defined  by  law.  And  section  thirty- 
three  hundred  and  thirty-nine  of  the  Revised  Statutes  is  hereby 
amended  accordingly :  Provided ,  That  in  lieu  of  or  in  addition  to  the 
present  requirements  of  law  in  that  respect,  all  stamps  used  for 
denoting  the  tax  upon  fermented  liquors  or  other  taxes  may,  in  the 
discretion  of  the  Commissioner  of  Internal  Revenue,  be  canceled  by 
perforations  to  be  made  in  such  manner  and  form  as  the  Commis¬ 
sioner  may  by  regulations  prescribe.”  *  *  * 

Sec.  15.  That  the  provisions  of  this  act  shall  take  effect  on  and 
after  the  first  day  of  July,  nineteen  hundred  and  one,  except  where 
otherwise  expressly  provided. 

[Act  of  April  12,  1902  (32  Stat.,  96).] 

Section  1.  That  section  one  of  the  act  entitled  “An  act  to  provide 
ways  and  means  to  meet  war  expenditures,  and  for  other  purposes,” 
approved  June  thirteenth,  eighteen  hundred  and  ninety-eight,  as 
amended  by  the  act  of  March  second,  nineteen  hundred  and  one,  enti¬ 
tled  “An  act  to  amend  an  act  entitled  ‘An  act  to  provide  ways  and 


TAX  ON  FERMENTED  LIQUORS. 


5 


means  to  meet  war  expenditures,  and  for  other  purposes/  approved 
June  thirteenth,  eighteen  hundred  and  ninety-eight,  and  to  reduce 
taxation  thereunder,”  be,  and  is  hereby,  further  amended  so  as  to 
read  as  follows: 

“ Section  1.  That  there  shall  be  paid  on  all  beer,  lager  beer,  ale, 
porter,  or  other  similar  fermented  liquor,  brewed  or  manufactured 
and  sold,  or  stored  in  warehouse,  or  removed  for  consumption  or  sale, 
within  the  United  States,  by  whatever  name  such  liquors  may  be 
called,  in  lieu  of  the  tax  now  imposed  by  law,  a  tax  of  one  dollar  for 
every  barrel  containing  not  more  than  thirty-one  gallons ;  and  at  a  like 
rate  for  any  other  quantity  or  for  any  fractional  part  of  a  barrel,  as 
authorized  and  defined  by  section  thirty- three  hundred  and  thirty-nine 
of  the  Revised  Statutes  of  the  United  States:  Provided,  That  in  lieu 
of  or  in  addition  to  the  present  requirements  of  law  in  that  respect  all 
stamps  used  for  denoting  the  tax  upon  fermented  liquors  or  other 
taxes  may,  in  the  discretion  of  the  Commissioner  of  Internal  Revenue, 
be  canceled  by  perforations  to  be  made  in  such  manner  and  form  as 
the  Commissioner  may,  by  regulations,  prescribe.”  *  *  * 

Sec.  11.  That  this  act,  except  as  otherwise  specially  provided  for 
in  the  preceding  section,  shall  take  effect  July  first,  nineteen  hundred 
and  two. 


DEFINITION  OF  THE  WORD  GALLON. 

Section  21,  act  of  March  1,  1879,  provides — 

That  the  word  “gallon,”  wherever  used  in  the  internal-revenue  law, 
relating  to  beer,  lager-beer,  ale,  porter,  and  other  similar  fermented 
liquors,  shall  be  held  and  taken  to  mean  a  wine-gallon,  the  liquid 
measure  containing  two  hundred  and  thirty-one  cubic  inches. 

DEFINITION  AND  QUALIFICATION  OF  A  BREWER. 

(a)  Brewer  defined. 

Section  3244,  Revised  Statutes,  provides  that — 

*  *  *  Every  person  who  manufactures  fermented  liquors  of  any 

name  or  description  for  sale,  from  malt,  wholly  or  in  part,  or  from 
any  substitute  therefor,  shall  be  deemed  a  brewer.  *  *  * 

(b)  Notice  of  intention  to  carry  on  business. 

Section  3335,  Revised  Statutes,  provides  that — 

Every  brewer  shall,  before  commencing  or  continuing  business,  file 
with  the  collector,  or  proper  deputy  collector,  of  the  district  in  which 
he  designs  to  carry  it  on  a  notice  in  writing,  stating  the  name  of  the 
person,  company,  corporation,  or  firm,  the  names  of  the  members  of 
any  such  company  or  firm,  the  places  of  residence  of  such  persons,  a 
description  of  the  premises  on  which  the  brewery  is  situated,  and  of 
his  or  their  title  thereto,  and  the  name  of  the  owner  thereof. 

This  notice  should  be  made  in  duplicate  on  Form  27 c. 

The  deputy  collector  who  receives  the  notice  in  duplicate  on  this 
form  will  forward  one  copy  to  the  Commissioner  of  Internal  Revenue 
and  the  other  to  the  collector  of  the  district. 


6 


TAX  ON  FERMENTED  LIQUORS. 


This  notice  will  be  given  in  all  cases  before  commencing  business, 
and  on  the  first  of  July  of  each  succeeding  year  in  cases  where  the 
business  of  brewing  is  to  be  continued,  regardless  of  the  time  of  giv¬ 
ing  bond. 

The  blank  space  on  Form  27 c  for  the  name  or  style  under  which 
the  business  is  to  be  carried  on  is  not  intended  to  be  filled  with  the 
name  of  the  brewery,  if  it  has  one,  but  with  the  individual,  firm,  or 
corporate  name  under  which  the  person  or  persons  interested  intend 
to  conduct  his  or  their  operations. 

The  name  of  every  person  interested  or  to  be  interested  in  the  busi¬ 
ness,  etc.,  must  be  stated  in  the  proper  space,  except  in  case  of  notices 
given  by  incorporated  companies,  when  the  names  and  addresses  of 
the  officers  of  the  corporation  should  be  given. 

As  bottling  is  not  permitted  on  any  portion  of  the  brewery  premises, 
description  of  bottling  establishments  must  not  be  made  on  Form  27 c, 
and  the  land  on  which  any  bottling  house  is  situated,  or  on  which 
any  bottling  business  is  conducted,  must  not  be  included  within  the 
description  of  brewery  premises  on  Form  27 c. 

The  statement  of  the  whole  quantity  of  malt  liquors  annually  made 
and  sold  or  removed  should  in  all  cases  be  made  for  the  two  special-tax 
years  immediately  preceding  the  date  of  the  notice. 

The  signature  to  the  notice,  when  given  by  an  individual,  must  in  all 
cases  be  made  by  the  brewer  in  person  or  in  his  name  by  his  authorized 
agent  or  attorney. 

In  case  of  a  firm  the  signature  must  be  made  in  the  firm  name  by  a 
member  of  the  firm  or  by  some  person  duly  authorized,  as  above. 

In  case  of  a  corporation  the  signature  must  be  made  in  the  name  and 
under  the  seal  of  the  corporation  by  the  proper  officer  thereof. 

The  collector,  or  proper  deputy  collector,  will  enter  on  the  third 
page  of  the  notice,  in  the  appropriate  spaces,  the  amount  of  special 
tax  paid  by  the  brewer  for  the  period  covered  by  the  notice,  and  the 
date  and  penal  sum  of  the  bond  last  given. 

(c)  Special  taxes. 

At  the  time  of  filing  the  above  notice  the  brewer  will  pay  the  special 
tax  required  by  law,  which  is  $100  per  annum  where  he  manufactures 
500  barrels  or  more  per  year,  and  $50  per  annum  where  he  manufac¬ 
tures  less  than  500  barrels  per  year. 

11  Every  person  who  sells,  or  offers  for  sale,  malt  liquors  in  less  quan¬ 
tities  than  five  gallons  at  one  time,  but  who  does  not  deal  in  spirituous 
liquors,  shall  be  regarded  as  a  retail  dealer  in  malt  liquors,”  and  shall 
pay  a  special  tax  of  twenty  dollars. 

“  Every  person  who  sells,  or  offers  for  sale,  malt  liquors  in  quan¬ 
tities  of  not  less  than  five  gallons  at  one  time,  but  who  does  not  deal 
in  spirituous  liquors  at  wholesale,  shall  be  regarded  as  a  wholesale 


TAX  ON  FERMENTED  LIQUORS. 


7 


dealer  in  malt  liquors,  ”  and  shall  pay  a  special  tax  of  fifty  dollars: 
“Provided,  That  no  brewer  shall  be  required  to  pay  a  special  tax  as 
a  dealer  by  reason  of  selling  in  the  original  stamped  packages,  whether 
at  the  place  of  manufacture  or  elsewhere,  malt  liquors  manufactured 
by  him  or  purchased  and  procured  by  him  in  his  own  casks  or  ves¬ 
sels,  under  the  provisions  of  section  thirty-three  hundred  and  forty- 
nine  of  the  Revised  Statutes;  but  the  quantity  of  malt  liquors  so  pur¬ 
chased  shall  be  included  in  calculating  the  liability  to  brewer’s  special 
tax  of  both  the  brewer  who  manufactures  and  sells  the  same  and  the 
brewer  who  purchases  the  same:  And  it  is  hereby  'provided,  That  no 
further  collection  of  special  tax  as  retail  dealers  in  malt  liquors  shall 
be  made  from  brewers  for  selling  malt  liquors  of  their  own  manufac¬ 
ture  in  the  original  stamped  eighth-barrel  package.”  (See  sec.  3244 
Rev.  St  at.,  as  amended.) 


(d)  Brewers’  bond. 

Section  3336,  Revised  Statutes,  as  amended  by  act  of  April  29,  1886, 
provides  that — 

Every  brewer,  on  filing  notice  as  aforesaid  of  his  intention  to  com¬ 
mence  or  continue  business,  shall  execute  a  bond  to  the  United  States, 
to  be  approved  by  the  collector  of  the  district,  in  a  sum  equal  to  three 
times  the  amount  of  the  tax  which,  in  the  opinion  of  the  collector,  said 
brewer  will  be  liable  to  pay  during  any  one  month,  and  conditioned 
that  he  shall  pay,  or  cause  to  be  paid,  as  herein  provided,  the  tax 
required  by  law  on  all  beer,  lager-beer,  ale,  porter,  and  other  fer¬ 
mented  liquors  made  by  or  for  him,  before  the  same  is  sold  or  removed 
for  consumption  or  sale,  except  as  hereinafter  provided;  and  that  he 
shall  keep,  or  cause  to  be  kept,  a  book,  in  the  manner  and  for  the  pur¬ 
poses  hereinafter  specified,  which  shall  be  open  to  inspection  by  the 
proper  officers,  as  by  law  required;  and  that  he  shall  in  all  respects 
faithfully  comply,  without  fraud  or  evasion,  with  all  requirements  of 
law  relating  to  the  manufacture  and  sale  of  any  malt  liquors  aforesaid  ; 
and  he  shall  execute  a  new  bond  once  in  four  years  and  whenever 
required  so  to  do  by  said  collector,  in  the  amount  above  named  and 
conditioned  as  above  provided,  which  bond  shall  be  in  lieu  of  any 
former  bond  or  bonds  of  such  brewer  in  respect  to  all  liabilities  accru¬ 
ing  after  its  approval  by  said  collector. 

Such  bond  will  be  according  to  Form  20,  and  in  compliance  with  the 
following  instructions : 

The  Christian  names  must  be  written  in  the  body  of  the  bond  in 
full,  and  so  signed  to  the  bond. 

The  residence  of  each  signer  must  be  stated  in  the  bond. 

A  seal  of  wax  or  wafer  (or  corporate  seal  in  case  of  a  corporation) 
must  be  attached  to  each  signature. 

Each  signature  must  be  made  in  the  presence  of  two  witnesses, 
who  must  sign  their  names  as  such,  except  as  to  bonds  executed  on 
behalf  of  a  corporation,  either  as  principal  or  surety,  in  which  case 
the  corporate  seal  will  be  a  sufficient  attestation. 

11749—09 - 2 


8 


TAX  ON  FERMENTED  LIQUORS. 


There  must  be  at  least  two  sureties  (except  in  cases  where  a  surety 
company  is  accepted  as  sole  surety  under  act  of  August  13,  1894),  and 
the  bond  must  be  dated. 

The  sufficiency  of  personal  sureties  must  be  shown  by  affidavits 
made  on  the  bond,  or  on  Form  33. 

The  penal  sum  named  in  the  bond  should  be  equal  to  three  times 
the  amount  of  the  tax  which,  in  the  opinion  of  the  collector,  the 
brewer  will  be  liable  to  pay  during  any  one  month,  and  a  new  bond 
must  be  given  at  the  expiration  of  the  fourth  year,  or  whenever  it 
shall  be  required  by  the  collector. 

The  surety  or  sureties  on  the  bond  must  have  no  interest  whatever 
in  the  business. 

In  case  of  incorporated  companies  the  bond  must  be  executed 
in  their  corporate  capacity  and  under  their  corporate  seals  and 
signatures. 

In  case  of  a  brewing  company  not  incorporated,  the  name  of  the 
firm  as  well  as  of  each  member  thereof  must  be  recited  in  the  bond, 
which  should  be  signed  by  each  member  of  the  firm. 

Executors,  administrators,  and  assignees  continuing  the  business 
must  execute  a  new  bond.  . 

Each  bond  having  a  corporate  surety  will  be  executed  in  duplicate; 
one  copy  with  the  collector’s  approval  indorsed  thereon  will  be  filed 
in  the  collector’s  office,  and  the  other  copy,  similarly  indorsed,  will 
be  immediately  forwarded  to  the  Commissioner  of  Internal  Revenue. 
When  personal  sureties  are  offered,  the  bond  need  not  be  executed 
in  duplicate,  and  in  such  cases  the  bond  will  not  be  forwarded  to  the 
Commissioner,  unless  special  instructions  requiring  such  action  are 
given  in  any  particular  case. 

brewers’  books  and  returns. 

Section  3337,  Revised  Statutes,  provides  that — 

Every  person  who  owns  or  occupies  any  brewery,  or  premises  used 
or  intended  to  be  used  for  the  purpose  of  brewing  or  making  such 
fermented  liquors,  or  who  has  such  premises  under  his  control  or 
superintendence,  as  agent  for  the  owner  or  occupant,  or  has  in  his 
possession  or  custody  any  brewing  materials,  utensils,  or  apparatus, 
used  or  intended  to  be  used  on  said  premises  in  the  manufacture  of 
beer,  lager-beer,  ale,  porter,  or  other  similar  fermented  liquors,  either 
as  owner,  agent,  or  superintendent,  shall,  from  day  to  day,  enter,  or 
cause  to  be  entered,  in  a  book  to  be  kept  by  him  for  that  purpose,  the 
kind  of  such  malt  liquors,  the  estimated  quantity  produced  in  barrels, 
and  the  actual  quantity  sold  or  removed  for  consumption  or  sale  in 
barrels  or  fractional  parts  of  barrels.  He  shall  also,  from  day  to  day, 
enter,  or  cause  to  be  entered,  in  a  separate  book  to  be  kept  by  him  for 
that  purpose,  an  account  of  all  materials  by  him  purchased  for  the 
purpose  of  producing  such  fermented  liquors,  including  grain  and 
malt.  And  he  shall  render  to  the  collector,  or  the  proper  deputy 
collector,  on  or  before  the  tenth  day  of  each  month,  a  true  statement, 
in  writing,  in  duplicate,  taken  from  his  books,  of  the  estimated  quan¬ 
tity  in  barrels  of  such  malt  liquors  brewed,  and  the  actual  quantity 


TAX  ON  FERMENTED  LIQUORS. 


9 


sold  or  removed  for  consumption  or  sale  during  the  preceding  month; 
and  shall  verify,  or  cause  to  be  verified,  the  said  statement,  and  the 
facts  therein  set  forth,  by  oath,  to  be  taken  before  the  collector  of  the 
district,  or  proper  deputy  collector,  according  to  the  form  required 
by  law.  Said  books  shall  be  open  at  all  times  for  the  inspection  of 
any  collector,  deputy  collector,  inspector,  or  revenue  agent,  who  may 
take  memorandums  and  transcripts  therefrom. 

Section  333S,  Revised  Statutes,  provides  that — 

The  entries  made  in  such  books  shall,  on  or  before  the  tenth  day  of 
each  month,  be  verified  by  the  oath  of  the  person  by  whom  they  are 
made.  The  said  oath  shall  be  written  in  the  book  at  the  end  of  such 
entries,  and  be  certified  by  the  officer  administering  the  same,  and 
shall  be  in  form  as  follows: 

“  I  do  swear  (or  affirm)  that  the  foregoing  entries  were  made  by  me ; 
and  that  they  state  truly,  according  to  the  best  of  my  knowledge  and 
belief,  the  estimated  quantity  of  the  whole  amount  of  such  malt  liquors 
brewed,  and  the  actual  quantity  sold,  and  the  actual  quantity  removed, 

from  the  brewery  owned  by - ,  in  the  county  of - ;  and, 

further,  that  I  have  no  knowledge  of  any  matter  or  thing  required  by 
law  to  be  stated  in  said  entries  which  has  been  omitted  therefrom.” 

And  the  owner,  agent,  or  superintendent  aforesaid  shall  also,  in  case 
the  original  entries  made  in  his  book  were  not  made  by  himself,  sub¬ 
join  thereto  the  following  oath,  to  be  taken  in  manner  as  aforesaid: 

“I  do  swear  (or  affirm)  that,  to  the  best  of  my  knowledge  and  belief, 
the  foregoing  entries  fully  set  forth  all  the  matters  therein  required 
by  law;  and  that  the  same  are  just  and  true,  and  that  I  have  taken  all 
the  means  in  my  power  to  make  them  so.” 

Section  3340,  Revised  Statutes,  as  amended,  provides  that — 

Every  owner,  agent,  or  superintendent  of  any  brewery,  vessels,  or 
utensils  used  in  making  fermented  liquors,  who  evades,  or  attempts 
to  evade,  the  payment  of  the  tax  thereon,  or  fraudulently  neglects  or 
refuses  to  make  true  and  exact  entry  and  report  of  the  same  in  the 
manner  required  by  law,  or  to  do,  or  cause  to  be  done,  any  of  the 
things  by  law  required  to  be  done  by  him  *  *  *  or  who  inten¬ 

tionally  makes  false  entry  in  said,  book  or  in  said  statement,  or  know¬ 
ingly  allows  or  procures  the  same  to  be  done,  shall  forfeit,  for  every 
such  offense,  all  the  liquors  made  by  him  or  for  him,  and  all  the  ves¬ 
sels,  utensils,  and  apparatus  used  in  making  the  same,  and  be  liable  to 
a  penalty  of  not  less  than  five  hundred  nor  more  than  one  thousand 
dollars,  to  be  recovered  with  costs  of  suit,  and  shall  be  deemed  guilty 
of  a  misdemeanor,  and  be  imprisoned  for  a  term  not  exceeding  one 
year.  And  every  brewer  who  neglects  to  keep  books,  or  refuses  to 
furnish  the  account  and  duplicate  thereof  as  provided  by  law,  or 
refuses  to  permit  the  proper  officer  to  examine  the  books  in  the  man¬ 
ner  provided,  shall,  for  every  such  refusal  or  neglect,  forfeit  and  pay 
the  sum  of  three  hundred  dollars. 

(a)  Brewers’  books. 

Two  books  are  required  to  be  kept  (sec.  3337)  by  every  person 
engaged  in  brewing,  as  above  described. 

Form  No.  104  is  recommended  for  the  book  for  recording  the  quan¬ 
tities  made,  removed,  or  sold. 


10 


TAX  ON  FERMENTED  LIQUORS. 


In  a  separate  book  is  to  be  entered,  from  day  to  day,  an  account  of 
all  materials  purchased  by  him  for  the  purpose  of  producing  fermented 
liquors,  including  grain  and  malt,  in  such  form  as  shall  be  distinct  and 
explicit  and  convenient  for  reference.  Brewers  must  make  apparent 
on  the  material  book  the  disposition  made  of  all  materials  entered 
thereon  which  are  not  used  in  the  production  of  fermented  liquor. 

The  entries  made  in  these  books  must,  on  or  before  the  tenth  day  of 
each  month,  be  verified  by  the  oath  or  affirmation  of  the  person  or  per¬ 
sons  by  whom  such  entries  were  made,  which  oath  or  affirmation 
must  be  written  in  the  books  respectively  at  the  end  of  such  entries, 
and  be  certified  by  the  officer  administering  the  same.  And  said  books 
are  required  to  be  open  at  all  times  for  the  inspection  of  any  collector, 
deputy  collector,  or  revenue  agent,  who  may  take  memoranda  there¬ 
from. 

For  verification  of  the  book  containing  the  entries  of  materials  pur¬ 
chased,  the  same  form  is  to  be  used  as  is  given  in  Form  104,  except 
that  for  the  words  “malt  liquors  brewed  and  the  actual  quantity 
sold,  and  the  actual  quantity  removed  from,”  the  words  “material 
purchased  for  the  purpose  of  producing  fermented  liquors  in”  should 
be  substituted.  And  the  owner,  agent,  or  superintendent,  when  the 
entries  are  not  made  by  himself,  must  further  verify  them  in  the 
manner  as  shown  by  Form  104. 

( b )  Brewers’  monthly  returns. 

Every  brewer  shall,  on  or  before  the  10th  day  of  each  month,  render 
to  the  collector  or  proper  deputy  collector,  in  duplicate,  a  true  state¬ 
ment  in  writing  (Form  18),  taken  from  his  books,  for  the  preceding 
month,  of  the  matters  called  for  by  said  form,  which  return  will  be 
duly  verified  as  in  said  form  prescribed. 

Collectors,  after  having  examined  the  return  to  see  that  it  is  cor¬ 
rectly  made  and  properly  verified  and  indorsed,  will  forward  the 
duplicate  copy  to  the  Commissioner  of  Internal  Revenue,  and  retain 
the  original  on  file. 

Whenever  business  commences  after  the  first  of  the  month,  or  is 
discontinued  before  the  last  of  the  month,  the  date  of  such  commence¬ 
ment  or  discontinuance  will  be  entered  in  the  proper  “On  hand”  line 
in  columns  1  and  12.  The  entire  stock  of  fermented  liquor  on  hand 
will  be  so  reported  on  this  form  in  barrels,  containing  31  gallons  to 
the  barrel,  whether  the  same  is  in  merchantable  packages  or  otherwise. 
Fermented  liquors  removed  without  stamps  to  a  warehouse  in  the 
district  will  be  returned  on  Form  18,  as  part  of  the  stock  “on hand” 
at  the  brewery. 

Where  such  removal  is  to  another  collection  district,  the  particular 
district  to  which  the  removal  is  made  will  be  stated  in  the  appropriate 
space. 


TAX  ON  FERMENTED  LIQUORS. 


11 


In  case,  however,  the  removal  without  stamps  is  to  more  than  one 
district,  the  word  “other”  will  be  inserted  in  the  blank  instead  of  the 
number  of  the  district,  and  a  voucher  showing  a  detailed  statement  of 
districts  and  the  quantity  removed  to  each  will  accompany  this  form. 

Every  brewer  who  sells  fermented  liquor  at  retail,  besides  affixing 
and  canceling  the  proper  stamps  on  the  vessels  in  which  the  same  is 
contained,  is  required  to  keep  an  account  of  the  quantity  so  sold  by 
him,  and  of  the  number  and  size  of  the  vessels  in  which  the  same  may 
have  been  contained,  and  to  make  a  report  thereof,  verified  by  oath, 
monthly  (on  Form  18),  to  the  collector.  (See  sec.  3348,  Rev.  Stat.) 

The  quantity  in  barrels  of  each  kind  of  fermented  liquor  produced 
during  the  month  will  be  entered  in  column  11  on  this  form;  and  the 
total  given  at  the  foot  of  the  column  must  agree  in  all  cases  with  the 
total  entered  in  column  9  on  the  line  “Made  during  the  month.” 

The  kind,  as  well  as  the  quantity,  of  each  class  of  material  used  in 
the  production  of  fermented  liquor  during  the  month  will  be  entered 
under  “Statement  of  materials  used.”  When  material  is  used  other 
than  enumerated  under  said  heading,  the  kind  and  quantity  thus  used 
will  be  stated  under  “Other  material.” 

Entries  under  the  heading  “Number  and  kind  of  stamps”  must  be 
'in  detail,  and  the  stamps  entered  on  the  line  “Used  during  the 
month”  should  correspond  in  number  and  denomination  to  number 
and  size  of  the  packages  of  liquor  returned  as  taxably  disposed  of. 

The  return  must  be  signed  by  the  person  by  whom  it  is  rendered, 
and  if  not  verified  by  himself,  he  must  cause  it  to  be  verified  by  some 
person  having  personal  knowledge  of  the  business  and  being  other¬ 
wise  fully  qualified  by  his  position  to  make  the  oath.  This  includes 
being  fully  empowered  by  the  principal  to  verify  the  statement, 
which  authority,  in  case  of  a  corporation,  should  be  conferred  by 
resolution. 

The  person  thus  verifying  should  append  his  title  to  his  signature 
as  attorney,  agent,  etc.,  and  collectors  are  expected  to  know  that  the 
person  thus  signing  is  acting  in  the  capacity  thus  indicated. 

The  last  return,  Form  18,  of  a  brewer  who  has  permanently  dis¬ 
continued  business  will  be  marked  “Final,”  and  in  case  another 
brewer  succeeds  to  the  business  on  the  same  premises,  that  fact  will 
be  made  to  appear  by  entering  on  the  face  of  the  return  the  words 
“Succeeded  by - ,”  inserting  in  the  blank  the  name  of  the  suc¬ 

cessor  in  business. 

The  first  return  of  a  brewer  on  Form  18  will  be  marked  “First,” 
and  where  the  brewer  rendering  his  first  return  has  succeeded,  on  the 
same  premises,  a  former  brewer,  that  fact  will  be  indicated  by  entering 

on  the  face  of  the  return  the  words  “Succeeding - ,”  inserting 

in  the  blank  the  name  of  the  predecessor  in  business. 


12 


TAX  ON  FERMENTED  LIQUORS. 


PROCUREMENT  OF  STAMPS. 

Section  3341,  Revised  Statutes,  as  amended,  provides  that — 

The  Commissioner  of  Internal  Revenue  shall  cause  to  be  prepared, 
for  the  payment  of  such  tax,  suitable  stamps  denoting  the  amount  of 
tax  required  to  be  paid  on  the  hogsheads,  barrels,  and  halves,  thirds, 
quarters,  sixths,  and  eighths  of  a  barrel  of  such  fermented  liquors 
(and  shall  also  cause  to  be  prepared  suitable  permits  for  the  purpose 
hereinafter  mentioned),  and  shall  furnish  the  same  to  the  collectors  of 
internal  revenue,  who  shall  each  be  required  to  keep  on  hand  at  all 
times  a  sufficient  supply  of  permits  and  a  supply  of  stamps  equal  in 
amount  to  two  months’  sales  thereof,  if  there  be  any  brewery  or  brew¬ 
ery  warehouse  in  his  district ;  and  such  stamps  shall  be  sold,  and  per¬ 
mits  granted  and  delivered  by  such  collectors,  only  to  the  brewers  of 
their  districts,  respectively.  Such  collectors  shall  keep  an  account  of 
the  number  of  permits  delivered  and  of  the  number  and  value  of  the 
stamps  sold  by  them  to  each  brewer. 

Every  brewer  desiring  to  obtain  stamps  denoting  payment  of  the 
tax  on  fermented  liquors  will  first  apply  to  the  collector  of  the  district 
in  which  his  brewery  is  situated.  Failing  to  obtain  them  of  such  col¬ 
lector,  he  may  apply  to  the  collector  of  another  district,  and  the  last- 
named  collector,  upon  satisfying  himself  of  a  previous  application  and 
refusal,  as  before  specified,  may  furnish  to  him  the  desired  stamps. 

Collectors  are  hereby  instructed  to  deliver  stamps  and  brewers’  per¬ 
mits  only  upon  the  written  order  of  the  brewer  entitled  to  the  same, 
made  on  Form  7. 

Stamps  will  be  transmitted  by  ordinary  mail,  unless  otherwise 
directed.  If  ordered  by  registered  mail,  money  or  postage  stamps 
to  pay  the  registry  fees  must  in  all  cases  accompany  the  order.  When 
transmitted  by  mail  in  any  manner  it  will  be  at  the  risk  of  the  person 
or  firm  ordering  the  same.  Stamps  may  be  forwarded  by  express,  at 
the  expense  of  the  taxpayer. 

To  avoid  all  fractions,  brewers  should  order  stamps  in  such  numbers 
as  that  the  “total face  value ”  of  each  purchase  will  amount  to  $1  or 
a  multiple  thereof. 

Form  7  will  be  furnished  to  collectors  in  necessary  quantities  as 
they  may  order. 

Collectors  will  keep  accounts  of  stamps  sold  to  brewers  in  the  record 
furnished  by  this  office. 

Stamps  may  be  sold  to  persons  who  have  ceased  to  hold  a  special-tax 
stamp  as  brewers,  to  be  affixed  to  merchantable  packages  of  fer¬ 
mented  liquor  lawfully  manufactured  by  them  in  a  previous  special- 
tax  year.  Such  persons,  however,  will  only  be  competent  to  sell  the 
liquor  thus  stamped  upon  payment  of  the  dealers’  special-tax. 

When  a  legal  transfer  of  a  brewery  business  and  the  stock  on  hand 
is  made,  the  fermented  liquor  in  stock  may  be  transferred  unstamped 
and  taken  up  and  accounted  for  by  the  successor  in  business. 


TAX  ON  FERMENTED  LIQUORS. 


13 


The  reuse  of  stamps  being  prohibited  by  law,  brewers  must  destroy 
the  stamps  on  packages  of  fermented  liquor  returned  to  them,  if  the 
stamps  are  removed  from  the  packages,  or  if  the  contents  are  with¬ 
drawn  therefrom  or  are  in  any  manner  changed  or  altered.  A  stamp 
once  applied  to  a  package  can  never  be  legally  removed  and  applied  to 
another. 

CANCELLATION  AND  AFFIXINO  OF  STAMPS. 

Section  3342,  Revised  Statutes,  as  amended  by  act  of  March  3,  1875, 
provides — 

That  every  brewer  shall  obtain,  from  the  collector  of  the  district  in 
which  his  brewery  or  brewery  warehouse  is  situated,  and  not  other¬ 
wise  unless  such  collector  shall  fail  to  furnish  the  same  upon  applica¬ 
tion  to  him,  the  proper  stamps,  and  shall  affix,  upon  the  spigot  hole 
in  the  head  of  every  hogshead,  barrel,  keg,  or  other  receptacle  in 
which  any  fermented  liquor  is  contained,  when  sold  or  removed  from 
such  brewery  or  warehouse,  (except  in  case  of  removal  under  permit, 
as  hereinafter  provided),  a  stamp  denoting  the  amount  of  the  tax 
required  upon  such  fermented  liquor,  which  stamp  shall  be  destroyed 
by  driving  through  the  same  the  faucet  through  which  the  liquor  is  to 
be  withdrawn,  or  an  air  faucet  of  equal  size,  at  the  time  the  vessel  is 
tapped,  in  case  the  vessel  is  tapped  through  the  other  spigot  hole,  (of 
which  there  shall  be  but  tvro,  one  in  the  head  and  one  in  the  side),  and 
shall,  also,  at  the  time  of  affixing  such  stamp,  cancel  the  same  by 
writing  or  imprinting  thereon  the  name  of  the  person,  firm,  or  corpora¬ 
tion  by  whom  such  liquor  was  made,  or  the  initial  letters  thereof,  and 
the  date  when  canceled.  Every  brewer  who  refuses  or  neglects  to  affix 
and  cancel  the  stamps  required  by  law  in  the  manner  aforesaid,  or  who 
affixes  a  false  or  fraudulent  stamp  thereto,  or  knowingly  permits  the 
same  to  be  done,  shall  pay  a  penalty  of  one  hundred  dollars  for  each 
barrel  or  package  on  which  such  omission  or  fraud  occurs,  and  be 
imprisoned  not  more  than  one  year. 

The  proviso  contained  in  the  first  section  of  the  act  of  March  2,  1901, 
reads  as  follows: 

Provided ,  That  in  lieu  of  or  in  addition  to  the  present  requirements 
of  law  in  that  respect,  all  stamps  used  for  denoting  the  tax  upon  fer¬ 
mented  liquors  or  other  taxes  may,  in  the  discretion  of  the  Commis¬ 
sioner  of  Internal  Revenue,  be  canceled  by  perforations  to  be  made 
in  such  manner  and  form  as  the  Commissioner  may  by  regulations 
prescribe. 

In  the  exercise  of  the  authority  thus  conferred  it  was  prescribed 
that  on  and  after  September  1,  1901,  and  until  otherwise  ordered,  all 
stamps  used  for  denoting  the  tax  upon  fermented  liquors  shall  be  can¬ 
celed  by  perforations,  to  be  made  in  the  form  of  the  name  of  the  per¬ 
son,  firm,  or  corporation  by  whom  such  liquors  were  made,  or  some 
suitable  abbreviation  thereof,  or  of  the  initial  letters  of  the  name,  and 
the  date  when  canceled,  which  date  may  be  indicated  by  numerals,  if 
preferred,  signifying  the  number  of  the  month  in  the  calendar,  the 


14 


TAX  ON  FERMENTED  LIQUORS. 


day  of  the  month,  and  the  last  two  figures  of  the  number  of  the  current 
year,  as,  for  example,  5  2  01,  meaning  May  2,  1901. 

Such  cancellation  is  in  lieu  of  the  method  of  cancellation  required 
before  September  1,  1901. 

The  several  letters  and  figures  of  the  cancellation  thus  prescribed 
must  be  each  not  less  than  one-fourth  of  an  inch  in  height  and  of  pro¬ 
portionate  width  and  suitably  spaced  for  legibility  and  distinctness, 
and  must  be  clearly  and  sharply  outlined,  either  (1)  by  perforations 
cut  through  the  substance  of  the  stamp,  cutting  out  a  portion  of  the 
stamp,  and  not  merely  puncturing  same,  each  perforation  to  be  not 
less  than  one  thirty-second  of  an  inch  in  width  or  diameter,  and  clearly 
and  evenly  cut  out;  or  (2)  by  perforations  in  the  form  of  incisions 
through  the  stamp  at  least  one  thirty-second  of  an  inch  in  width,  cut¬ 
ting  out  the  form  of  the  letters  and  figures  from  the  substance  of  the 
stamp,  which  letters  and  figures  must  be  of  the  same  size,  spacing, 
and  distinctness  as  above  specified. 

The  full  name  of  the  person,  firm,  or  corporation,  or  suitable 
abbreviation  thereof,  or  the  initial  letters  of  the  name,  must  be  cut  out 
of  the  stamp ;  the  name  alone  of  some  prominent  member  of  a  firm  or 
corporation  will  not  be  sufficient. 

Section  3348,  Revised  Statutes,  requires  that— 

Every  brewer  who  sells  fermented  liquor  at  retail  at  the  brewery  or 
other  place  where  the  same  is  made,  shall  affix  and  cancel  the  proper 
stamps  upon  the  hogheads,  barrels,  kegs,  or  other  vessels  in  which 
the  same  is  contained,  and  shall  keep  an  account  of  the  quantity  so 
sold  by  him,  and  of  the  number  and  size  of  the  hogsheads,  barrels, 
kegs,  or  other  vessels  in  which  the  same  has  been  contained,  and  shall 
make  a  report  thereof,  verified  by  oath,  monthly  to  the  collector. 

Section  3352,  Revised  Statutes,  provides  that — 

The  ownership  or  possession  by  any  person  of  any  fermented  liquor 
after  its  sale  or  removal  from  the  brewery  or  warehouse,  or  other 
place  where  it  was  made,  upon  which  the  tax  required  has  not  been 
paid,  shall  render  such  liquor  liable  to  seizure  wherever  found,  and  to 
forfeiture,  removal  under  said  permits  excepted.  And  the  absence  of 
the  proper  stamps  from  any  hogshead,  barrel,  keg,  or  other  vessel 
containing  fermented  liquor,  after  its  sale  or  removal  from  the  brewery 
where  it  was  made,  or  warehouse  as  aforesaid,  shall  be  notice  to  all 
persons  that  the  tax  has  not  been  paid  thereon,  and  shall  be  prim  a 
facie  evidence  of  the  nonpayment  thereof. 

These  provisions  make  it  necessary  that  the  stamps  should  be  well 
secured  to  the  vessels,  and  not  easily  removed  therefrom  except  by 
intentional  effort  for  that  purpose.  The  following  method  of  prepar¬ 
ing  and  affixing  them  is  therefore  recommended: 

Dissolve  1  pound  of  chloride  of  sodium  (common  salt)  in  2  gallons 
of  cold  water;  spread  this  over  the  backs  of  the  sheets  of  stamps  with 
a  broad,  thin  brush,  and  then  dry  them.  They  are  now  ready  to  be 
affixed. 


TAX  ON  FERMENTED  LIQUORS. 


15 


In  applying  the  stamp  to  the  cask,  first  take  liquid  silicate  of  soda 
of  medium  density;  rub  it  well  into  the  irregularities  of  tho  surface 
of  the  wood  with  a  brush,  and  apply  the  stamp  quickly  while  the 
wood  is  quite  wet. 

When  the  stamp  is  dry,  a  second  coating  of  the  silicate  should  he 
spread  over  the  face  of  the  stamp;  and  if  the  barrels  are  to  he  exposed 
to  the  action  of  the  weather,  or  to  he  stored  in  damp  places  for  con¬ 
siderable  periods,  the  stamp  should  he  secured  by  four  tacks,  to  pre¬ 
vent  its  peeling  off. 

The  stamp  must  be  affixed  upon  the  spigot  hole  in  the  head  of  the 
package;  and  the  spigot  or  the  air  faucet  must  in  all  cases  he  driven 
through  the  stamp  in  such  a  manner  as  to  effectually  destroy  such 
stamp. 

In  renewing  the  stamp  upon  a  barrel  used  a  second  time,  the  tacks 
should  be  withdrawn  and  the  stamp  carefully  scraped  off.  The  stamp 
at  the  time  of  being  affixed  is  to  be  canceled  by  perforations  in  the 
manner  above  described. 

The  affixing  to  a  package  of  two  or  more  stamps  having  an  aggre¬ 
gate  face  value  equal  to  the  amount  of  tax  due  thereon  is  not  a  suffi¬ 
cient  compliance  with  the  provisions  of  law  concerning  the  stamping 
of  packages  of  fermented  liquor.  The  tax  on  each  package  must  be 
represented  by  a  single  stamp  of  the  proper  denomination,  duly  can¬ 
celed,  and  affixed  upon  the  spigot  hole  in  the  head  of  the  package. 

Refusal  or  neglect  to  affix  and  cancel  the  stamps  required  by  law 
in  the  manner  provided  exposes  the  brewer  to  a  penalty  of  SI 00  for 
each  package,  and  imprisonment  for  not  more  than  one  year. 

CASKS  TO  BE  MARKED. 

Section  3349,  Revised  Statutes,  provides  that — 

Every  brewer  shall,  by  branding,  mark  or  cause  to  be  marked  upon 
every  hogshead,  barrel,  keg,  or  other  vessel  containing  the  fermented 
liquor  made  by  him,  before  it  is  sold  or  removed  from  the  brewery  or 
brewery  warehouse,  or  other  place  of  manufacture,  the  name  of  the 
person,  firm,  or  corporation  by  whom  such  liquor  was  manufactured, 
and  the  place  of  manufacture;  and  every  person  other  than  the  owner 
thereof,  or  his  agent  authorized  so  to  do,  who  intentionally  removes 
or  defaces  such  marks  therefrom,  shall  be  liable  to  a  penalty  of  fifty 
dollars  for  each  cask  or  other  vessel  from  which  the  mark  is  so  re¬ 
moved  or  defaced:  Provided,  That  when  a  brewer  purchases  fer¬ 
mented  liquor  finished  and  ready  for  sale  from  another  brewer,  in 
order  to  supply  the  customers  of  such  purchaser,  the  purchaser  may, 
upon  written  notice  to  the  collector  of  his  intention  so  to  do,  and 
under  such  regulations  as  the  Commissioner  of  Internal  Revenue  may 
prescribe,  furnish  his  own  vessels,  branded  with  his  name  and  the 
place  where  his  brewery  is  situated,  to  be  filled  with  the  fermented 
liquor  so  purchased,  and  to  be  so  removed;  the  proper  stamps  to  be 
affixed  and  canceled,  as  aforesaid,  by  the  manufacturer  before  removal. 

(For  liability  to  special  tax  in  such  cases,  see  page  7  herein.) 

11749—09 - 3 


16 


TAX  ON  FERMENTED  LIQUORS. 


The  notice  in  this  case  will  be  in  the  following  form: 

- , - ,  190—. 

Sir:  You  are  hereby  notified  that  I  have  purchased - barrels 

of - from  M - ,  brewer,  and  that  I  intend  to  furnish 

my  own  vessels,  branded  with  my  own  name,  for  the  reception  of 
said  liquor;  said  vessels  to  be  delivered  from  the  premises  of  said 
brewer  at o’clock  —  m.,  on  the day  of - 190 — . 

- ,  Brewer. 

To - ,  Collector. 

The  manufacturer  of  the  beer  so  delivered  will  enter  in  his  “Record 
of  fermented  liquors  made,  removed,”  etc.,  Form  104,  under  the  head¬ 
ing  “Quantity  of  malt  liquor  sold  or  removed  for  consumption  or 
sale,”  and  under  the  date  of  delivery  the  name  of  the  brewer  to  whom 
delivered  and  his  place  of  business,  the  kind  or  kinds  of  liquor  deliv¬ 
ered,  and  the  number  and  kind  of  packages  filled. 

He  will  also  enter  the  liquor  so  sold  as  a  separate  item  in  his  monthly 
return,  Form  18,  for  the  month  in  which  the  delivery  is  made,  with  the 
name  and  place  of  business  of  the  brewer  to  whom  sold  opposite  the 
title  “Sold  at  brewery  at  wholesale,”  and  under  the  proper  denomina¬ 
tions  of  liquor  and  of  packages.  The  purchaser,  likewise,  will  also 
enter  in  his  record,  Form  104,  under  the  date  of  the  delivery  of  such 
liquor,  the  name  and  place  of  business  of  the  manufacturer  of  the 
liquor,  and  on  the  same  line,  under  the  heading  “Quantity  of  malt 
liquors  brewed,”  as  a  separate  item,  the  number  of  full  barrels  and 
fraction  of  a  barrel,  if  any,  of  each  kind  of  liquor  so  purchased;  and 
under  the  heading  “Stamps  purchased”  the  number  of  stamps  of 
each  denomination  which  were  affixed  to  the  packages  by  the 
manufacturer. 

The  purchaser  will  not  hereafter  be  required  to  enter  such  transac¬ 
tions  in  the  body  of  his  return  on  Form  18,  but  when  the  liquor  thus 
acquired,  or  any  part  thereof,  is  disposed  of  he  will  enter  such  sale  in  a 
footnote  on  the  return  for  the  month  in  which  the  liquor  is  sold  in  the 
following  form: 

Sold  in  addition  to  the  above - barrels  of  liquor  purchased, 

regularly  stamped,  from  -  brewer,  in  the  -  district 

of  - . 

These  special  entries  in  the  records  and  returns  should  be  made  in 
red  ink.  Collectors  will  cause  the  notices  of  intent  to  purchase  to  be 
carefully  compared  with  the  returns  of  the  respective  brewers  on 
Form  18  for  the  month  in  which  the  delivery  was  made,  to  see  that  all 
proper  entries  have  been  made.  They  will  also  from  time  to  time, 
and  as  occasion  may  seem  to  require,  direct  an  officer  to  attend 
and  verify  a  delivery  of  fermented  liquor  of  which  notice  has  been 
received. 


TAX  ON  FERMENTED  LIQUORS. 


17 


PERMIT  TO  CARRY  ON  BUSINESS  AT  ANOTHER  PLACE  ON  ACCOUNT  OF 

ACCIDENT. 

Section  3350,  Revised  Statutes,  provides  as  follows: 

Where,  by  reason  of  an  accident  by  fire  or  flood,  or  by  reason  of  bis 
brewery  undergoing  repairs,  or  other  circumstances  which  may,  in  the 
opinion  of  the  collector  of  the  proper  district,  require  or  render  it 
proper  that  a  brewer  shall  be  permitted  to  conduct  his  business 
wholly  or  partially  at  some  other  place  within  the  same  or  adjoining 
district  for  a  temporary  period,  it  shall  be  lawful  for  such  collector, 
under  such  regulations  and  subject  to  such  limitation  of  time  as  the 
Commissioner  of  Internal  Revenue  may  prescribe,  to  issue  a  permit 
to  such  brewer  authorizing  him  to  conduct  his  business  wholly  or 
partially,  according  to  the  circumstances,  at  such  other  place  for  a 
period  in  such  permit  to  be  stated,  and  such  brewer  shall  not  be 
required  to  pay  another  special  tax  for  the  purpose. 

The  permit  in  the  case  will  be  made  in  duplicate,  one  copy  to  be 
delivered  to  the  brewer  and  one  forwarded  to  the  Commissioner  of 
Internal  Revenue,  and  will  be  in  the  following  form,  viz: 

Office  of  Collector  of  Internal  Revenue, 

- District  of - , 

- ,  190— . 

• 

In  accordance  with  your  request,  and  in  consequence  of  - 

- (here  set  forth  the  nature  of  the  accident  or  other  cause),  you 

are  hereby  authorized  to  manufacture - on  the  premises  owned 

by - ,  situated  at  No. - street,  in  the - of 

- ,  county  of - ,  and -  district  of  the  State  of - , 

during  a  period  extending  from  the  -  day  of - , 

190 — ,  to  the  -  day  of  - ,  190 — ,  without  paying  any 

special  tax  other  than  that  by  which  you  are  authorized  to  conduct 

the  business  of  brewing  on  the  premises  owned  by - , 

situated  at  No. - street,  in  the - of - ,  county 

of - ,  and - district  of  the  State  of - ,  it  being  expressly 

understood  that  the  liquor  produced  on  the  premises  herein  men¬ 
tioned  to  be  temporarily  used  by  you  shall  be  put  up  in  vessels 
branded  with  your  name  and  regular  place  of  business,  reported  on 
your  books  and  returns  as  constructively  produced  and  sold  at  such 
place  of  business,  but  actually  at  the  place  temporarily  occupied 
under  section  3350,  the  stamps  or  permits  in  case  of  removal  to  be 
procured  from  me. 

- ,  Collector. 

To - ,  Brewer. 

In  case  the  premises  to  be  temporarily  used  are  situated  in  an 
adjoining  district,  the  collector  will  not  issue  the  permit  without  the 
written  consent  of  the  collector  of  that  district  or  special  authority 
of  this  office. 

No  such  permit  will  be  given  until  consent  to  the  business  being 
conducted  as  proposed  shall  be  indorsed  on  the  brewers  bond  by  the 
principal  and  sureties  thereof. 


18 


TAX  ON  FERMENTED  LIQUORS. 


REMOVAL  OF  FERMENTED  LIQUORS  FROM  BREWERY  PREMISES  WITHOUT 

STAMPS.. 

(a)  Under  permit  to  a  depot ,  warehouse,  etc. 

Section  3345,  Revised  Statutes,  provides  that — 

Any  brewer  may  remove  or  transport,  or  cause  to  be  removed  or 
transported,  from  his  brewery  or  other  place  of  manufacture  to  a 
depot,  warehouse,  or  other  place  used  exclusively  for  storage  or  sale 
in  bulk,  and  occupied  by  him,  in  another  part  of  the  same  collection 
district,  or  in  another  collection  district,  but  to  no  other  place,  malt 
liquor  of  his  own  manufacture,  known  as  lager-beer,  in  quantities  of 
not  less  than  six  barrels  in  one  vessel,  and  malt  liquor  of  his  own 
manufacture,  known  as  ale  or  porter,  or  any  other  malt  liquor  of  his 
own  manufacture  not  heretofore  mentioned,  in  quantities  not  less  than 
fifty  barrels  at  a  time,  without  affixing  the  proper  stamps  on  said 
vessels  of  lager-beer,  ale,  porter,  or  other  malt  liquor,  at  the  brewery 
or  place  of  manufacture,  under  a  permit,  which  shall  be  granted,  upon 
application,  by  the  collector  of  the  district  in  which  said  malt  liquor 
is  manufactured,  and  under  such  regulations  as  the  Commissioner  of 
Internal  Revenue  may  prescribe;  and  thereafter  the  manufacturer  of 
said  malt  liquor  shall  stamp  the  same,  when  it  leaves  such  depot  or 
warehouse,  in  the  same  manner  and  under  the  same  penalties  and 
liabilities  as  when  stamped  at  the  brewery  as  herein  provided.  And 
the  collector  of  the  district  in  which  such  depot  or  warehouse  is 
situated  shall  furnish  the  manufacturer  with  the  stamps  for  stamping 
the  same,  as  if  the  said  malt  liquor  had  been  manufactured  in  his  dis¬ 
trict.  And  said  permit  must  be  affixed  to  every  such  vessel  or  cask  so 
removed,  and  canceled  or  destroyed  in  such  manner  as  the  Commis¬ 
sioner  of  Internal  Revenue  may  prescribe,  and  under  the  same  penal¬ 
ties  and  liabilities  as  provided  herein  as  to  stamps. 

Collectors  will  be  supplied  with  permits  in  books  containing  400 
each,  upon  requisition,  in  the  same  manner  as  stamps  are  furnished. 

For  the  removal  of  fermented  liquor,  permits  must  be  obtained  from 
the  collector  of  the  district  wherein  such  liquor  was  manufactured,  on 
application  to  that  officer,  which  application  is  to  be  made  in  the  fol¬ 
lowing  form : 

APPLICATION  FOR  PERMIT  TO  REMOVE  FERMENTED  LIQUOR  FROM  BREWERY  TO 

WAREHOUSE. 

-  - — ,  190—. 

To  the  collector  of  internal  revenue, -  collection  district,  State 

°f - •' 

The  undersigned,  manufacturer  of - ,  at - ,  in  said  dis¬ 

trict,  owning  (or  occupying  or  hiring)  a  depot  or  warehouse  for  the 

storage  and  sale  of  the  same  in  the  - —  district  of  the  State  of 

- ,  to  wit:  at - ,  in  the  -  of  — - ,  and  county  of 

- ,  hereby  applies  for  the  necessary  permits  to  remove - bar¬ 
rels  of - from  his  brewery  aforesaid  to  his  place  of  storage  and 

sale  aforesaid,  without  affixing  stamps  thereto. 

The  quantity  of  fermented  liquors  now  at  said  brewery  is  as  follows: 
[Quantity  stated  here];  and  the  quantity  of  same  at  said  warehouse  is 
as  follows:  [Quantity  at  warehouse  stated  here.] 

(Signed)  - . 


TAX  ON  FERMENTED  LIQUORS. 


19 


Upon  the  receipt  of  this  application,  the  collector  will  fill  out  and 
sign  the  required  permits,  and  deliver  them  to  the  applicant,  who  will 
append  or  indorse  his  receipt  therefor  on  the  application  in  the  fol¬ 
lowing  form,  viz: 

- , - ,  190—. 

Received  this  day  from  - - ,  collector  of  the - district, 

and  State  of  — - - ,  permits  numbered  as  follows: - to - ,  both 

serial  numbers  inclusive,  which  are  to  be  immediately  affixed  to  the 
within-mentioned  barrels  of - ,  for  removal  as  within  specified. 

- ,  Brewer. 

The  brewer,  upon  receiving  the  permits,  will  at  once  securely  affix 
them  to  the  heads  of  the  barrels  near  the  chime  and  immediately 
under  the  bung  stave. 

At  the  time  the  permit  is  affixed,  he  will  cancel  it  by  perforations  in 
the  same  manner  as  is  required  in  cancelling  stamps  denoting  payment 
of  tax  upon  fermented  liquors. 

As  soon  as  the  permits  are  affixed,  and  within  five  days  after  their 
delivery  to  the  brewer,  he  will  notify  the  collector  of  the  fact,  in  order 
that  the  collector  may  record  the  date  of  affixing  on  the  stubs  of  such 
permits  retained  in  his  office. 

Permits  are  intended  merely  to  protect  the  liquor  while  in  transit 
from  the  brewery  to  the  warehouse,  and  any  package  found  out  of  the 
warehouse  under  permit  at  any  time  after  it  should  have  been  in  ware¬ 
house  may  be  detained,  and  the  claimant  required  to  prove  absence  of 
fraudulent  intent. 

The  date  of  affixing  the  permit,  or,  in  case  this  date  is  accidentally 
obliterated,  the  date  of  issuing  the  permit  is  the  point  of  time  from 
which  calculations  should  be  made  in  determining  as  to  whether  the 
package  has  been  too  long  on  the  way  from  the  brewery  to  the  ware¬ 
house.  In  case  both  dates  are  illegible  the  package  may  be  detained 
and  the  claimant  required  to  prove  that  no  fraud  has  been  practiced  or 
is  intended.  The  serial  number  of  the  permit  will  indicate  the  means 
of  release  where  there  is  no  fraud  in  the  case,  the  collector  who  issued 
the  permit  being  able  to  give  the  date  thereof  from  the  serial  number 
on  the  stub  in  his  possession.  In  case  the  warehouse  is  situated  in  his 
own  district,  the  collector  will  take  such  precautions  as  he  sees  fit  to 
secure  the  prompt  delivery  of  the  liquor  into  the  warehouse.  In  case 
the  warehouse  is  in  another  district  a  notification  on  Form  No.  29 
will  be  forwarded  by  the  collector  to  the  collector  of  the  district  to 
which  the  removal  is  to  be  made;  and  the  brewer  will  promptly 
notify  the  last-named  collector  of  the  receipt  at  his  store  or  warehouse 
of  such  fermented  liquor.  If  this  last  notice  is  not  seasonably  received 
information  of  this  fact  will  be  given  by  the  collector  in  whose  district 
the  warehouse  is  situated  to  the  collector  who  granted  the  permits. 

Collectors  and  brewers  are  requested  to  write  or  stamp  the  dates  on 
these  permits  with  great  distinctness. 


20 


TAX  ON  FERMENTED  LIQUORS. 


The  permits  will  be  retained  on  the  packages  until  they  are  with¬ 
drawn  from  the  warehouse  and  the  tax-paid  stamps  affixed,  at  which 
time  the  permits  will  be  scraped  off  and  utterly  destroyed. 

A  record  of  all  permits  granted  must  be  kept  by  the  collector  grant¬ 
ing  them. 

Stamps  for  use  at  the  place  of  storage  in  these  cases  should  be 
obtained  of  the  collector  of  the  district  within  which  the  warehouse  is 
situated. 

Brewers  will  enter  all  liquor  removed  to  other  collection  districts 
under  permits  on  the  book  (Form  104)  and  report  the  same  on  the 
return  (Form  18),  as  directed  under  the  head  of  “  Brewer’s  monthly 
returns”  herein. 

Fermented  liquors  removed  without  stamps  to  a  warehouse  in  the 
district  in  which  manufactured  will  be  considered  a  part  of  the  stock 
“on  hand”  in  the  brewery. 

Where  the  removal  is  to  a  warehouse  in  another  collection  dis¬ 
trict,  the  brewer  will  make  monthly  returns,  in  duplicate,  on  Form 
18a  to  the  collector  of  such  district,  or  to  the  proper  deputy  collector, 
showing  the  quantity  so  received  and  the  disposition  of  same,  as  well 
as  the  number  of  stamps  of  various  denominations  purchased,  used, 
and  on  hand  at  the  beginning  and  end  of  the  month.  * 

One  of  the  duplicate  returns  will  be  retained  in  the  collector’s  office 
and  the  other  will  be  forwarded,  after  examination,  to  the  Commis¬ 
sioner  of  Internal  Revenue. 

(b)  Removal  of  sour  or  damaged  fermented  liquor. 

Section  3347,  Revised  Statutes,  provides  that — 

When  fermented  liquor  has  become  sour  or  damaged,  so  as  to  be 
incapable  of  use  as  such,  brewers  may  sell  the  same  for  manufacturing 
purposes,  and  may  remove  the  same  to  places  where  it  may  be  used 
for  such  purposes,  in  casks,  or  other  vessels,  unlike  those  ordinarily 
used  for  fermented  liquors,  containing  respectively  not  less  than  one 
barrel  each,  and  having  the  nature  of  their  contents  marked  upon 
them,  without  affixing  thereon  the  permit,  stamp  or  stamps  required. 

(c)  Sale  and  removal  of  unfermented  worts. 

Section  3351,  Revised  Statutes,  provides  that — 

When  malt  liquor  or  tun  liquor,  in  the  first  stages  of  fermentation, 
known  as  unfermented  worts,  of  whatever  kind,  is  sold  by  one  brewer 
to  another  for  the  purpose  of  producing  fermentation  or  enlivening 
old  or  stale  ale,  porter,  larger-beer,  or  other  fermented  liquors,  it  shall 
not  be  liable  to  a  tax  to  be  paid  by  the  seller  thereof,  but  the  tax  on 
the  same  shall  be  paid  by  the  purchaser  thereof,  when  the  same,  hav¬ 
ing  been  mixed  with  the  old  or  stale  beer,  is  sold  by  him  as  provided 
by  law,  and  such  sale  or  transfer  shall  be  subject  to  such  restrictions 
and  regulations  as  the  Commissioner  of  Internal  Revenue  may  pre¬ 
scribe. 


TAX  ON  FERMENTED  LIQUORS. 


21 


Any  brewer  desiring  to  transfer  unfermented  worts  from  one  brew¬ 
ery  to  another  may  do  so  upon  obtaining  a  permit  therefor  from  the 
collector  of  the  district  in  which  the  brewery  from  which  the  worts 
are  to  be  removed  is  situated,  which  permit  will  state  specifically  the 
quantity  to  be  removed  and  the  time  in  which  the  removal  is  to  lie 
made.  Collectors  will  be  careful  to  ascertain  the  exact  time  required, 
and  fill  up  the  permit  accordingly. 

To  avoid  trouble,  brewers  are  desired,  as  far  as  possible,  to  use  in 
such  cases  vessels  unlike  those  ordinarily  used  for  fermented  liquors, 
containing  not  less  than  1  barrel  each,  and  having  the  nature  of  their 
contents  marked  upon  them. 

BOTTLING. 

Section  3354  of  the  Revised  Statutes  of  the  United  States,  as 
amended  by  the  act  approved  June  18,  1890,  provides  that — 

Every  person  who  withdraws  any  fermented  liquor  from  any  hogs¬ 
head,  barrel,  keg,  or  other  vessel  upon  which  the  proper  stamp  has  not 
been  affixed,  for  the  purpose  of  bottling  the  same,  or  who  carries  on,  or 
attempts  to  carry  on,  the  business  of  bottling  fermented  liquor  in  any 
brewery  or  other  place  in  which  fermented  liquor  is  made,  or  upon  any 
premises  having  communication  with  such  brewery,  or  any  warehouse, 
shall  be  liable  to  a  fine  of  five  hundred  dollars,  and  the  property  used 
in  such  bottling  or  business  shall  be  liable  to  forfeiture:  Provided ,  how¬ 
ever,  That  this  section  shall  not  be  construed  to  prevent  the  withdrawal 
»  and  transfer  of  fermented  liquors  from  any  of  the  vats  in  any  brewery, 
by  way  of  a  pipe  line  or  other  conduit,  to  another  building  or  place, 
for  the  sole  purpose  of  bottling  the  same;  such  pipe  line  or  conduit 
to  be  constructed  and  operated  in  such  manner,  and  with  such  cis¬ 
terns,  vats,  tanks,  valves,  cocks,  faucets,  and  gauges,  or  other  utensils 
or  apparatus,  either  on  the  premises  of  the  brewery  or  the  bottling 
house,  and  with  such  changes  of  or  additions  thereto,  and  such  locks, 
seals,  or  other  fastenings,  and  under  such  rules  and  regulations  as  shall 
be  from  time  to  time  prescribed  by  the  Commissioner  of  Internal  Reve¬ 
nue,  subject  to  the  approval  of  the  Secretary  of  the  Treasury,  and  all 
locks  and  seals  prescribed  shall  be  provided  by  the  Commissioner  of 
Internal  Revenue,  at  the  expense  of  the  United  States:  Provided 
further,  That  the  tax  imposed  in  section  thirty-three  hundred  and 
thirty-nine  of  the  Revised  Statutes  of  the  United  States  shall  be  paid 
on  all  fermented  liquor  removed  from  a  brewery  to  a  bottling  house 
by  means  of  a  pipe  or  conduit,  at  the  time  of  such  removal,  by  the 
cancellation  and  defacement,  by  the  collector  of  the  district,  or  his 
deputy,  in  the  presence  of  the  brewer,  of  the  number  of  stamps 
denoting  the  tax  on  the  fermented  liquor  thus  removed.  The 
stamps  thus  canceled  and  defaced  shall  be  disposed  of  and  accounted 
for  in  the  manner  directed  by  the  Commissioner  of  Internal  Revenue, 
with  the  approval  of  the  Secretary  of  the  Treasury.  And  any  viola¬ 
tion  of  the  rules  and  regulations  hereafter  prescribed  by  the  Com¬ 
missioner  of  Internal  Revenue,  with  the  approval  of  the  Secretary 
of  the  Treasury,  in  pursuance  of  these  provisions,  shall  be  subject 
to  the  penalties  above  provided  by  this  section.  Every  owner, 
agent,  or  superintendent  of  any  brewery  or  bottling  house  who 


22 


TAX  OX  FERMENTED  LIQUORS. 


removes,  or  connives  at  the  removal  of,  any  fermented  liquor  through 
a  pipe  line  or  conduit,  without  payment  of  the  tax  thereon,  or  who 
attempts  in  any  manner  to  defraud  the  revenue  as  above,  shall 
forfeit  all  the  liquors  made  by  and  for  him,  and  all  the  vessels,  utensils, 
and  apparatus  used  in  making  the  same. 

Beer  intended  for  bottling,  except  when  removed  by  pipe  line,  must 
be  drawn  into  stamped  packages  and  removed  in  such  packages  from 
the  brewery  to  the  bottling  establishment. 

The  attention  of  collectors  is  called  to  the  fact  that  the  law  does 
not  under  any  circumstances  permit  bottling  on  any  portion  of  the 
premises  described  in  the  Form  27 c. 

Bottling  must  be  performed  in  a  building  entirely  distinct  and  sepa¬ 
rate  from  any  brewery,  or  any  warehouse,  and  having  no  communica¬ 
tion  therewith. 

The  bottling  of  fermented  liquor  from  open  and  unstamped  vessels  * 
is  not  permitted  by  law;  neither  is  the  addition  of  water,  fermenting 
agents,  extracts,  etc.,  allowed  previous  to  bottling. 

The  steaming,  washing,  and  storage  of  bottles  on  a  brewery  prem¬ 
ises  are  no  more  permissible  than  the  filling  of  the  same. 

SEPARATION  OF  BREWERY  PREMISES  AND  BOTTLING  ESTABLISHMENT. 

In  view  of  the  fact  that  the  law  (sec.  3354  above  quoted)  strictly 
prohibits,  under  severe  penalties,  the  bottling  of  fermented  liquor  in 
any  brewery  or  upon  any  premises  having  communication  with  such  « 
brewery,  or  any  warehouse,  it  is  highly  important,  where  a  bottling 
house  is  about  to  be  located  in  the  vicinity  of  a  brewery  or  brewery 
warehouse,  that  the  two  should  not  be  so  situated  with  reference  to 
each  other  as  to  admit  of  communication  between  them. 

To  insure  such  an  absence  of  communication  it  is  prescribed  that 
bottling  premises  must  be  so  separated  from  any  brewery  that  the  beer 
in  its  passage  from  the  brewery  premises  to  the  bottling  house  must 
be  carried  upon  a  street  or  road  which  is  a  public  highway,  and  is 
actually  and  commonly  used  as  a  thoroughfare  by  the  public. 

In  other  words,  the  location  of  the  brewery  premises  as  described 
on  notice,  Form  27c,  with  reference  to  any  bottling  house  must  be 
such  that  it  is  a  physical  impossibility  to  remove  fermented  liquor 
from  the  former  to  the  latter,  in  the  ordinary  packages,  except  by 
carrying  it  out  over  the  surface  of  a  street  or  road  which  is  a  public 
highway,  in  actual  and  common  use  by  the  general  public  as  a 
thoroughfare. 

This  rule  must  be  observed,  whether  a  pipe  line  exists  or  not,  and 
is  also  applicable  as  between  a  bottling  house  and  any  warehouse  for 
the  storage  of  fermented  liquor  under  section  3345,  Revised  Statutes. 

Collectors  are  hereby  required  whenever  it  comes  to  their  knowledge 
that  a  bottling  business  lias  been  established,  or  is  about  to  be  estab- 


TAX  ON  FERMENTED  LIQUORS. 


23 


lished,  in  the  vicinity  of  any  brewery  or  brewery  warehouse  to  cause 
examination  to  be  made  of  the  premises  and  their  surroundings  in 
order  to  assure  themselves  that  proper  separation  between  the  brewery 
and  bottling  premises  exists.  If  such  examination  reveals  the  fact 
that  the  location  or  proposed  location  of  the  bottling  house  is  contrary 
to  the  law  and  regulations  as  above  set  forth,  the  collector  will  at  once 
notify  the  bottler  to  that  effect  and  see  that  bottling  operations  are 
not  allowed  on  the  site  in  question,  unless  it  is  possible  to  effect  a 
proper  separation  by  mechanical  means  and  the  owner  of  the  premises 
immediately  makes  the  requisite  changes. 

If  there  is  any  doubt  in  the  mind  of  the  examining  officer  as  to  the 
propriety  of  the  location  of  the  bottling  house  with  respect  to  the 
brewery  premises  or  warehouse,  he  should  make  a  rough  diagram  of 
the  premises  showing  all  contiguous  and  intersecting  streets  and  the 
doors,  windows,  and  other  openings,  if  any,  in  the  walls  of  the  build¬ 
ings,  and  in  case  of  a  brewery,  correctly  indicating  by  a  definite  line 
inclosing  the  same,  the  boundary  line  of  the  brewery  premises,  as 
described  on  Form  27 c,  and  also  marking  in  the  margin  the  cardinal 
points  of  the  compass.  This  diagram  will  be  transmitted  at  once  by 
the  collector  to  the  Commissioner  of  Internal  Revenue,  accompanied 
by  a  statement  of  the  question  involved. 

PIPE  LINES. 

By  virtue  of  the  authority  conferred  in  section  3354,  Revised  Stat¬ 
utes,  above  quoted,  the  following  regulations  are  prescribed  govern¬ 
ing  the  removal  of  fermented  liquor  from  the  brewery  where  produced 
to  a  bottling  establishment  by  way  of  a  pipe  line  or  other  conduit : 

(a)  Notice  to  be  given  by  brewer. 

Every  brewer,  before  transferring  fermented  liquor  by  way  of  a 
pipe  line  or  other  conduit,  as  herein  provided,  shall  file  with  the  col¬ 
lector  of  the  district,  or  proper  deputy  collector,  a  “supplemental” 
notice  on  Form  27 c,  in  duplicate,  to  be  disposed  of  as  required  in  case 
of  ordinary  notices  on  said  form. 

No  entry  will  be  required  on  the  second  page  of  this  supplemental 
notice,  except  the  following: 

Fermented  liquor  will  be  transferred  from  these  premises  for  bot¬ 
tling  by  way  of  pipe  line  or  conduit,  under  the  act  of  June  18,  1890, 

and  it  is  expected  that  application  will  be  made  to  thus  remove - 

barrels  of  liquor  once  in - days. 

This  entry  will  also  be  made  on  all  subsequent  notices  given  on 
Form  27 c  by  the  brewer  during  the  continuance  of  the  removal  of 
fermented  liquor  as  above. 

The  collector,  or  the  proper  deputy  collector,  will  certify  in  the 
blank  space  at  the  foot  of  the  third  page  of  the  supplemental  notice, 


24 


TAX  ON  FERMENTED  LIQUORS. 


above  mentioned,  that  the  brewer  has  constructed  a  pipe  line  or 
conduit,  and  a  measuring  cistern  or  cisterns  and  attachments,  in 
strict  compliance  with  the  regulations,  and  that  the  gauge  attached 
to  each  cistern  is  found  by  actual  test  to  correctly  indicate  the  contents 
of  the  cistern  at  all  points. 

(b)  Construction  of  cisterns. 

Each  brewer  intending  to  remove  fermented  liquor  by  way  of  a  pipe 
line  or  other  conduit,  as  herein  provided,  must  erect,  either  upon  his 
brewery  premises  or  upon  the  premises  where  the  bottling  is  to  be 
performed,  for  the  reception  of  the  liquor  to  be  thus  removed,  a  meas¬ 
uring  cistern  or  cisterns  of  such  shape  as  to  admit  of  ready  measure¬ 
ment,  and  capable  of  containing  as  much  liquor  as  will  be  removed 
for  bottling  for  each  twenty-four  hours. 

Each  cistern  must  be  securely  covered,  and  if  an  opening  is  desired 
in  the  top  for  any  purpose,  the  opening  must  be  so  covered  and 
arranged  that  it  can  be  securely  locked. 

A  suitable  glass  gauge,  or  tube,  must  be  so  attached  to  each  cistern 
that  the  liquor  will  enter  the  gauge,  or  tube,  and  stand  therein  on  the 
same  level  at  which  it  stands  in  the  vessel. 

On  the  surface  of  such  gauge  will  be  etched  such  lines  and  figures 
as  will  constantly  indicate  the  exact  number  of  barrels  of  liquor,  of  31 
gallons  each,  in  the  vessel. 

Stopcocks,  arranged  so  as  to  completely  control  the  flow  of  liquor 
both  into  and  out  of  the  measuring  cistern,  and  capable  of  being 
locked,  must  be  provided. 

The  vessel  designed  for  use  as  a  measuring  cistern  must  have  a 
capacity  of  at  least  10  barrels,  and  in  the  event  that  it  should  be 
impracticable  to  construct  the  same  of  sufficient  capacity  to  supply 
the  requirements  of  the  bottling  house  for  a  period  of  twenty-four 
hours,  more  than  one  vessel  may  be  constructed  and  used  when 
authorized  by  the  collector  of  the  district. 

In  case  the  measuring  cistern  is  erected  upon  the  bottling  premises 
the  pipe  or  conduit  conveying  liquor  thereto  from  the  brewery  can  be 
placed  underground  only  by  running  the  same  through  a  tunnel  of 
sufficient  size  to  admit  the  convenient  passage  through  its  entire 
length  of  the  officer  who  is  required  to  examine  the  pipe  line.  Or 
in  case  it  is  impossible  or  impracticable  to  construct  such  a  tunnel,  in 
lieu  thereof,  the  pipe  for  the  conveyance  of  liquor  may  be  placed 
within  a  conduit,  not  less  than  fifteen  inches  in  diameter,  made  of 
steel  or  iron  pipe  or  other  equally  permanent  material  placed  end  to 
end  and  protected  either  at  the  bottling  house  end  or  at  the  brewery 
end  by  a  solid  iron  door,  or  doors,  with  hinges  bolted,  or  otherwise 
securely  fastened  to  the  end  of  the  conduit,  provision  being  made 
to  securely  fasten  the  doors  by  a  seal  lock,  the  key  to  which  must  at 
all  times  be  in  the  custody  of  the  proper  officer. 


TAX  ON  FERMENTED  LIQUORS. 


25 


Where  a  conduit  is  employed  as  above,  the  same  must  be  em¬ 
bedded  in  cement  or  concrete  and  the  sections  of  piping,  if  more 
than  one  section  is  employed,  must  be  securely  connected.  The 
conduit  must  pursue  a  straight  course  from  end  to  end,  and  provision 
must  be  made  for  lighting  it  at  both  ends  in  such  manner  that  ready 
examination  of  the  interior  of  the  conduit  may  be  made. 

When  a  tunnel  is  employed  under  the  above  requirements,  the 
pipe  line  or  other  conduit  must  be  so  placed  therein  as  to  admit 
of  ready  examination  of  the  same  at  all  points  from  end  to  end, 
and  communication  through  the  tunnel  between  the  brewery  premises 
and  bottling  house,  except  through  the  authorized  pipes,  must  be 
prevented  by  the  erection  within  the  tunnel,  or  at  either  end  thereof, 
of  a  suitable  door,  secured  by  a  seal  lock,  the  key  to  which  must 
at  all  times  be  in  possession  of  the  proper  deputy  collector,  who 
will  not  allow  the  door  to  be  unlocked  or  to  remain  unlocked  except 
in  his  presence. 

It  is  further  required  that  the  stopcock  controlling  the  flow  of 
fermented  liquor  into  the  measuring  cistern  shall  be  secured  by  a 
seal  lock,  as  well  as  the  one  controlling  the  outlet  thereof. 

In  no  instance  will  both  of  said  cocks  be  unlocked  at  the  same 
time,  but  either  may  be  opened,  and  remain  open,  as  best  suits  the 
convenience  of  the  brewer,  it  being  expected  that  collectors  will 
exercise  such  care  and  supervision  in  the  matter  as  not  to  afford 
opportunity  to  pass  any  fermented  liquor  through  the  pipe  line  and 
connected  cistern,  except  such  as  has  its  exact  quantity  duly  noted 
and  the  tax  thereon  paid  as  provided  by  law. 

In  no  instance  will  the  deputy  collector  unlock  a  cock  controlling 
the  flow  of  fermented  liquor  either  into  or  out  of  the  measuring 
cistern  without  first  observing  that  the  seal  in  the  lock  is  intact. 

No  cistern  shall  be  used  for  the  purpose  indicated  until  after  it 
has  been  carefully  examined  and  gauged  or  measured  by  a  deputy 
collector,  who  has  attached  thereto  his  certificate  that  the  same  is 
constructed  in  strict  compliance  with  these  regulations,  and  that 
the  gauge  registers  accurately. 

The  vessel  thus  provided  and  its  attachments  may  be  examined, 
and  the  accuracy  of  the  gauge  verified  at  any  and  all  times  by  internal 
revenue  officers  and  agents,  and  for  this  purpose  the  brewer  shall, 
on  demand,  empty  the  vessel  and  provide  suitable  appliances  for 
its  examination. 

( c )  Construction  of  the  pipe  line  or  conduit. 

The  pipe  line  or  conduit  employed  for  the  conveyance  of  fermented 
liquor,  under  the  provisions  of  the  law  above  quoted,  must  be  so 
constructed  as  to  admit  of  ready  examination  throughout  its  entire 
length. 


26 


TAX  ON  FERMENTED  LIQUORS. 


The  pipe  or  conduit  must  also  be  securely  connected  with  the 
cistern  described  above,  and  a  stopcock  capable  of  being  fastened 
by  a  padlock  must  be  placed  at  the  point  of  connection,  as  above 
directed. 

No  opening  whatever  will  be  permitted  in  the  pipe  line  or  conduit 
throughout  its  entire  length,  and  if  a  hot-water  connection  is  necessary 
near  one  end  of  the  pipe  for  cleansing  the  same,  it  must  be  secured  by 
a  seal  lock. 

Where  the  nature  and  extent  of  a  brewer’s  business  is  such  as  to 
require  the  use  of  more  than  one  measuring  cistern,  a  separate  supply 
pipe  for  each  cistern  may  be  authorized  by  the  collector,  if  necessary, 
in  which  event  each  additional  cistern  and  pipe  will  be  constructed, 
secured,  and  operated  in  the  same  manner  as  is  required  in  the  case  of 
a  single  measuring  cistern  and  supply  pipe. 

If  the  successful  prosecution  of  the  business  renders  it  necessary  to 
connect  any  portion  of  the  apparatus  upon  the  bottling  premises  with 
the  refrigerating  machine,  or  with  the  air  pump,  upon  the  brewery 
premises,  the  connecting  pipes  must  also  be  exposed  to  view  for  their 
entire  length,  and  be  subject  to  ready  examination  by  revenue  officers 
and  agents  at  all  times.  Every  pipe  for  the  transmission  of  air  or  gas 
must  be  equipped,  before  it  reaches  the  first  measuring  cistern,  with 
an  automatic  valve,  so  arranged  as  to  prevent  the  flow  of  any  liquid 
through  the  pipe. 

Such  additional  appliances  will  be  correctly  delineated  upon  the 
required  plan  with  the  same  exactness  as  is  provided  for  in  the  case  of 
the  other  apparatus  pertaining  to  the  pipe  line.  • 

(d)  Plan  of  brewery  and  course  of  pipe  line. 

Prior  to  being  authorized  to  remove  fermented  liquor,  as  herein  pro¬ 
vided,  the  brewer  must  prepare  at  his  own  expense  an  accurate  plan 
and  description,  in  triplicate,  showing  in  detail  the  exact  location  of  all 
pipes,  cisterns,  vats,  tanks,  valves,  cocks,  faucets,  gauges,  or  other 
utensils  or  apparatus,  either  on  the  premises  of  the  brewery,  the 
bottling  house,  or  intermediate,  used  in  the  transfer  of  fermented 
liquor  as  above. 

In  order  to  insure  the  construction  of  the  pipe  line  and  apparatus  in 
such  manner  as  to  comply  fully  with  law  and  regulations,  it  is  sug¬ 
gested  that  the  plan  and  description  be  prepared  and  submitted  to  the 
collector  of  the  district  in  advance  of  such  construction. 

When  the  plan  is  thus  submitted,  the  collector  will  carefully  exam¬ 
ine  the  same,  and  if  it  be  found  to  meet  the  requirements  of  the  law 
and  regulations  he  will  so  certify  on  each  copy  of  the  plan,  and  trans¬ 
mit  one  copy  of  it  to  this  office  for  its  approval. 


TAX  ON  FERMENTED  LIQUORS.  27 

Such  plan  must  be  on  good  paper  or  tracing  linen,  15  by  20  inches 
in  size,  and  drawn  to  a  scale  to  be  indicated  thereon. 

The  exact  capacity  of  each  measuring  cistern  will  be  stated  on  the 
plan,  and  the  course  of  the  pipe  line  or  conduit  leading  therefrom  or 
thereto,  as  the  case  may  be,  will  also  be  correctly  delineated  thereon, 
exhibiting  the  thoroughfares  crossed  by  the  pipe  line  or  conduit. 

The  plan  will  also  include  a  diagram  or  plat  of  the  brewery  and 
bottling  premises,  showing  all  contiguous  and  intersecting  streets,  and 
the  doors,  windows,  and  other  openings,  if  any,  in  the  walls  of  the 
buildings,  and  correctly  indicating,  by  a  definite  line  inclosing  the 
same,  the  boundary  line  of  fhe  brewery  premises,  as  described  on 
Form  27 c,  and  the  nature  of  the  business  conducted  in  all  buildings 
located  within  10  feet  of  the  pipe  line  or  conduit  aforesaid.  On  the 
margin  of  the  plat  the  cardinal  points  of  the  compass  will  be  indicated. 

One  of  said  plans  will  be  conspicuously  displayed  on  the  brewery 
premises,  one  will  be  filed  with  the  collector  of  the  district,  and  the 
third  will  be  transmitted  to  the  Commissioner  of  Internal  Revenue. 

Any  alteration  of,  or  addition  to,  any  portion  of  the  apparatus 
employed  in  the  removal  of  fermented  liquor,  as  above,  will  be  shown 
on  a  supplemental  plan  to  be  prepared  and  disposed  of  as  above 
directed. 

( e )  Locks  and  seals. 

Requisition  for  locks  and  seals  for  the  purposes  indicated  will  be 
addressed  to  the  Commissioner  of  Internal  Revenue  by  collectors,  and 
the  name  of  the  brewer  will  be  indicated  in  all  cases,  as  wTell  as  the 
precise  part  of  the  apparatus  upon  wdiich  each  lock  is  to  be  used. 

A  supply  of  seals  sufficient  for  six  months’  requirement  will  be 
ordered  at  a  time. 

In  the  event  that  perfect  locks  or  seals  procured  for  use  at  distil¬ 
leries  and  for  which  there  is  no  present  demand  are  in  the  district,  the 
same  may  be  employed  for  the  service  indicated. 

Locks  and  seals  procured  for  use  at  breweries  will  be  returned  on 
Form  152  in  the  same  manner  as  required  in  the  case  of  those  ordered 
for  service  at  distilleries. 

The  locks  will  be  used  by  deputy  collectors  as  hereinafter  directed. 

Seals  will  be  used  consecutively  in  the  order  in  which  they  are 
numbered,  and  deputy  collectors  wdio  superintend  the  transfer  of 
fermented  liquors  under  these  regulations  wTill  be  required  to  render 
monthly  reports  of  seals  used,  on  Form  145. 

Deputy  collectors  having  charge  of  locks,  keys,  and  seals,  procured 
for  the  use  above  indicated,  are  strictly  prohibited  from  intrusting  the 
same  to  any  person  other  than  an  internal-revenue  officer  entitled  to 
receive  the  same,  and  under  no  circumstances  will  they  permit  locks 
to  remain  open,  whether  hanging  by  the  shackle  or  otherwise. 


28 


TAX  ON  FERMENTED  LIQUORS. 


(/)  Testing  of  measuring  cistern  and  examination  of  apparatus. 

After  the  measuring  cistern  and  pipe  line  or  conduit  have  been 
constructed  and  a  plan  thereof  filed,  as  above  directed,  the  collector 
will  detail  a  deputy  collector  to  carefully  examine  the  entire  appa¬ 
ratus  to  see  that  it  is  constructed  in  strict  compliance  with  these 
regulations.  The  deputy  will  also  test  the  accuracy  of  the  gauge 
required  to  be  attached  to  the  cistern,  and  if  it  be  found  that  the 
same  is  not  strictly  accurate ,  or  that  any  portion  of  the  apparatus  does 
not  conform  to  these'requirements,  he  will  see  that  the  proper  changes 
are  made. 

The  test  must  be  an  actual  one,  and  it  is  suggested  that  it  be  made 
by  filling  the  cistern  with  water  and  drawing  off  a  quantity  of  exactly 
31  gallons  at  a  time,  observing  after  each  withdrawal  that  the  surface 
of  the  remaining  liquid  is  correctly  indicated  by  the  gauge  and  that 
the  number  of  barrels  withdrawn  when  the  cistern  has  been  emptied 
agrees  with  the  capacity  claimed  for  it  and  indicated  by  the  gauge. 

The  attention  of  collectors  is  especially  invited  to  the  absolute 
necessity  for  accuracy  in  the  construction  and  application  of  the 
gauge  relied  upon  for  indicating  the  contents  of  the  measuring  cistern 
and  also  to  the  importance  of  requiring  occasional  tests,  from  time 
to  time,  to  demonstrate  the  fact  that  the  gauge  still  remains  accurate. 

When  the  deputy  becomes  satisfied  that  the  cistern  or  cisterns  and 
attachments  are  properly  constructed,  as  above,  he  will  so  report  to 
the  collector  of  the  district  in  writing,  and  also  securely  attach  to 
each  cistern  a  certificate  in  the  following  form: 

Form  251. 

UNITED  STATES  INTERNAL  REVENUE. 

Deputy  collector's  certificate  as  to  result  of  examination  of  measuring 

cistern  and  appliances  employed  at - by - ,  brewer , 

for  conveyance  of  fermented  liquor  to  the  bottling  house. 

I  hereby  certify  that  on  the - day  of - ,  190 — ,  I  care¬ 

fully  examined  the  cistern  to  which  this  certificate  is  affixed,  and  the 
attachments  thereto,  including  the  pipe  line  or  conduit,  and  found 
the  same  constructed  in  strict  compliance  with  the  regulations  gov¬ 
erning  their  construction. 

I  also  certify  that  I  made  an  actual  test  of  the  gauge  tube  affixed  to 
this  cistern,  and  found  that  it  accurately  indicates  at  all  points  the 
contents  of  the  cistern. 

Deputy  Collector. 

(g)  Transfer  of  fermented  liquor  to  bottling  house. 

Upon  compliance  with  the  foregoing  requirements  the  brewer  may 
be  permitted  to  transfer  fermented  liquor  from  the  brewery,  by  way 


TAX  ON  FERMENTED  LIQUORS. 


29 


of  the  pipe  line  or  conduit,  for  the  sole  purpose  of  bottling  the  same, 
upon  making  application  to  the  collector  of  the  district  or  the  proper 
deputy  collector. 

This  application  will  be  made  on  Form  252,  and  the  brewer  will  state 
thereon  the  number  of  barrels  of  31  gallons  each  of  fermented  liquor 
which  he  desires  to  transfer,  which  number  must,  in  all  cases,  include 
a  sufficient  quantity  of  liquor  to  meet  the  demands  of  the  bottling 
house  for  a  period  of  at  least  twenty-four  hours. 

In  no  instance,  however,  will  less  than  10  barrels  of  liquor  be 
removed  at  one  time. 

Request  will  also  be  made  on  said  form  for  the  attendance  of  a 
deputy  collector  to  superintend  the  transfer  and  to  deface  stamps 
indicating  the  tax  on  the  liquor  thus  removed. 

Upon  receipt  of  said  application  a  deputy  collector,  to  be  indicated 
by  the  collector  of  the  district,  will  proceed  to  the  brewery  and  super¬ 
intend  the  transfer  of  the  liquor  mentioned  in  the  brewer’s  application 
and  deface  stamps  representing  the  tax  thereon  as  provided  below. 

Before  unlocking  the  lock  controlling  the  flow  of  liquor  from  the 
measuring  cistern  the  deputy  collector  must  not  fail  to  exercise  four 
precautions,  viz: 

1.  Securely  lock  the  stopcock  controlling  the  flow  of  liquor  into  the 
measuring  cistern  and  the  opening  in  the  top  of  said  cistern,  if  any. 

2.  Note  the  quantity  of  liquor  in  the  cistern  or  cisterns  and  see  that 
it  agrees  with  the  quantity  specified  in  the  application,  Form  252. 

3.  Require  payment  of  tax  on  the  quantity  so  noted,  by  the  brewer, 
who  will  deliver  the  requisite  stamps,  duly  canceled,  to  the  deputy 
collector. 

4.  Observe  if  the  proper  seal  is  in  the  lock  which  he  is  about  to  open 
and  that  it  is  intact. 

Having  observed  these  precautions,  the  deputy  collector  will  enable 
the  brewer  to  open  the  stopcock  controlling  the  flow  of  liquor  from  the 
measuring  cistern  by  removing  the  lock  securing  the  same  and  allow¬ 
ing  the  stopcock  to  remain  unlocked  until  all  the  contents  of  the 
cistern  have  been  withdrawn. 

While  the  withdrawal  is  in  progress  the  deputy  collector  must  remain 
at  the  brewery,  except  where  circumstances  are  such  that  during  the 
withdrawal  he  can  discharge  official  duties  at  other  places;  but  in  such 
case  he  should  return  to  the  brewery  in  season  to  change  the  locks  so 
as  to  allow  the  refilling  of  the  cistern  when  desired. 

After  all  of  the  liquor  in  the  measuring  cistern  has  been  withdrawn, 
the  deputy  collector  will  close  the  stopcock  controlling  the  flow  of 
liquor  from  the  cistern  and  secure  the  same  by  the  lock  provided  for 
such  purpose,  first  inserting  the  proper  seal. 

lie  will  then  unlock  the  stopcock  controlling  the  flow  of  liquor  into 
the  measuring  cistern,  and  permit  the  same  to  remain  unlocked  until 


30 


TAX  ON  FERMENTED  LIQUORS. 


such  time  as  liquor  shall  be  again  withdrawn  from  the  cistern,  pur¬ 
suant  to  application  on  Form  252  and  order  from  the  collector  to  the 
deputy  collector,  as  above  described. 

The  procedure  above  detailed  in  case  of  only  one  measuring  cistern 
is  applicable  to  any  number  of  such  cisterns  which  may  be  approved 
at  any  particular  pipe  line,  and  is  to  be  followed  in  all  cases,  except 
when  the  brewer  provides  two  or  more  measuring  cisterns  for  opera¬ 
tion  alternately,  in  sets,  and  desires  that  they  be  so  operated,  in  which 
case  the  deputy  collector  will  lock  the  inlets  and  unlock  the  outlets  of 
one  set  of  cisterns,  previously  filled,  and  at  the  same  time  will  lock  the 
outlets  and  unlock  the  inlets  of  the  other  set,  previously  emptied, 
leaving  the  cisterns  of  the  latter  set  in  position  to  be  filled  while  those 
of  the  former  set  are  being  emptied. 

(h)  Cancellation  and  defacement  of  stamps. 

The  brewer  will  deliver  to  the  deputy  collector,  before  the  lock  con¬ 
trolling  the  outlet  of  the  measuring  cistern  is  unlocked,  the  requisite 
number  of  beer  stamps  denoting  the  full  amount  of  tax  upon  the 
entire  quantity  of  fermented  liquor  to  be  withdrawn  from  the  cistern. 

The  stamps  so  delivered  must  previously  have  been  canceled  on  the 
margin  by  the  brewer  in  the  manner  prescribed  for  the  cancellation  of 
stamps  for  fermented  liquors. 

The  deputy  collector,  having  satisfied  himself  by  inspection  of  the 
stamps  that  they  have  been  properly  canceled,  will  cancel  and  deface 
the  stamps  so  delivered,  in  the  presence  of  the  brewer,  by  driving 
through  the  same  a  die  or  punch,  to  be  provided  for  that  purpose,  in 
such  manner  as  to  cut  from  the  center  of  each  stamp  a  piece  thereof 
1  inch  square. 

( i )  Disposition  to  be  made  of  canceled  and  defaced  stamps. 

The  deputy  collector  will  retain  the  stamps  thus  canceled  and  de¬ 
faced,  and  transmit  the  same  to  the  collector  of  the  district,  securely 
attached  to  Form  252,  upon  which  he  will  certify  as  to  the  exact 
quantity  of  fermented  liquor  removed  under  his  superintendence. 

The  deputy  collector  will  further  certify  on  said  form  that  he  super¬ 
intended  the  transfer  of  the  liquor,  stating  the  quantity,  and  that  the 
stamps  denoting  the  tax  on  the  entire  quantity  of  fermented  liquor 
thus  transferred  were  canceled  and  defaced,  as  above  provided. 

The  several  returns  on  Form  252  and  the  accompanying  canceled 
and  defaced  stamps  will  be  retained  by  the  collector  until  the  10th 
day  of  the  succeeding  month,  when  all  of  the  returns  on  Form  252 
rendered  for  the  previous  month,  and  the  canceled  and  defaced  stamps 
appertaining  thereto,  wilTbe  forwarded  by  registered  mail,  and  in  one 


TAX  ON  FERMENTED  LIQUORS. 


31 


package,  to  the  Commissioner  of  Internal  Revenue,  care  being  taken 
to  have  the  returns  of  each  particular  brewer  separated  from  the 
others. 

The  stamps  canceled  and  defaced  as  above,  accompanying  each 
return,  Form  252,  will  be  secured  by  passing  a  string  through  the 
holes  cut  by  the  die  or  punch  and  tying  the  ends. 

( j)  Return  on  Form  18  of  fermented  liquor  transferred  by  pipe  line  or 

conduit. 

Every  brewer  who  transfers  fermented  liquor  to  a  bottling  house  by 
way  of  pipe  line  or  conduit,  as  herein  provided,  will  return  on  Form  18, 
in  a  separate  item,  the  entire  quantity  of  fermented  liquor  thus  trans¬ 
ferred,  as  well  as  the  number  and  kind  of  stamps  used,  as  directed,  in 
the  payment  of  the  tax  thereon.  In  case  of  a  transfer  of  fermented 
liquor  to  be  bottled  for  export  the  figures  representing  the  quantity 
so  transferred  will  be  entered  separately  and  notice  on  Form  252  of 
such  intended  removal  will  not  be  required.  All  such  removals  will 
be  made  under  regulations  designated  as  No.  29. 

(k)  Supervision  of  breweries  operating  pipe  lines. 

The  deputy  collector  in  charge  of  any  brewery  operating  a  pipe  line 
as  above  is  expected  frequently  to  make  such  a  careful  examination  of 
all  pipes  leading  from  the  brewery  premises  to  the  bottling  establish¬ 
ment  as  to  be  constantly  assured  that  said  pipes  afford  no  opportunity 
for  the  surreptitious  removal  of  untaxed  fermented  liquor. 

He  is  also  required  to  exercise  such  a  strict  surveillance  over  the 
operations  of  the  brewery  and  pipe  line  as  to  insure  a  full  and  literal 
compliance  with  the  law  and  regulations  governing  the  same. 

EXPORTATION  OF  FERMENTED  LIQUORS  IN  BOND  WITHOUT  PAYMENT 

OF  TAX. 

For  form  of  bond,  and  other  papers,  and  instructions  relative  to 
the  exportation  of  fermented  liquors  in  bond  without  payment  of  tax 
under  the  act  approved  June  18,  1890,  see  Regulations,  No.  29. 

PENALTIES. 

In  addition  to  the  penalties  hereinbefore  stated,  section  3342, 
Revised  Statutes,  provides  that — 

Every  brewer  who  refuses  or  neglects  to  affix  and  cancel  the  stamps 
required  by  law  in  the  manner  aforesaid,  or  who  affixes  a  false  or 
fraudulent  stamp  thereto,  or  knowingly  permits  the  same  to  be  done, 
shall  pay  a  penalty  of  one  hundred  dollars  for  each  barrel  or  package 
on  which  such  omission  or  fraud  occurs,  and  be  imprisoned  not  more 
than  one  year. 


32 


TAX  ON  FERMENTED  LIQUORS. 


Section  3343,  Revised  Statutes,  provides  that — 

Whenever  any  brewer,  cartman,  agent  for  transportation,  or  other 
person,  sells,  removes,  receives,  or  purchases,  or  in  any  way  aids  in 
the  sale,  removal,  receipt,  or  purchase,  of  any  fermented  liquor  con¬ 
tained  in  any  hogshead,  barrel,  keg,  or  other  vessel  from  any  brewery 
or  brewery  warehouse,  upon  which  the  stamp,  or  permit,  in  case  of 
removal,  required  by  law,  has  not  been  affixed,  or  on  which  a  false  or 
fraudulent  stamp,  or  permit,  in  case  of  removal,  is  affixed,  with 
knowledge  that  it  is  such,  or  on  which  a  stamp,  or  permit,  in  case  of 
removal,  once  canceled,  is  used  a  second  time,  he  shall  be  fined  one 
hundred  dollars  and  imprisoned  for  not  more  than  one  year. 

Section  3344,  Revised  Statutes,  provides  that — 

Whenever  any  retail  dealer,  or  other  person,  withdraws  or  aids  in 
the  withdrawal  of  any  fermented  liquor  from  any  hogshead,  barrel, 
keg,  or  other  vessel  containing  the  same,  without  destroying  or  defa¬ 
cing  the  stamp  affixed  thereon,  or  withdraws  or  aids  in  the  withdrawal 
of  any  fermented  liquor  from  any  hogshead,  barrel,  keg,  or  other 
vessel,  upon  which  the  proper  stamp  has  not  been  affixed  or  on  which 
a  false  or  fraudulent  stamp  is  affixed,  he  shall  be  fined  one  hundred 
dollars  and  imprisoned  not  more  than  one  year. 

Section  3346,  Revised  Statutes,  as  amended  by  act  of  March  1,  1879, 
provides  that — 

Every  person  who  makes,  sells,  or  uses  any  false  or  counterfeit 
stamp  or  permit,  or  die  for  printing  or  making  stamps  or  permits, 
which  is  in  imitation  of  or  purports  to  be  a  lawful  stamp,  permit,  or 
die  of  the  kind  before  mentioned  in  this  chapter,  or  who  procures  the 
same  to  be  done,  and  every  person  who  shall  remove,  or  cause  to  be 
removed,  from  any  cask  or  package  of  fermented  liquors,  any  stamp 
denoting  the  tax  thereon,  with  intent  to  reuse  such  stamp,  or  who, 
with  intent  to  defraud  the  revenue,  knowingly  uses,  or  permits  to  be 
used,  any  stamp  removed  from  another  cask  or  package,  or  receives, 
buys,  sells,  gives  away,  or  has  in  his  possession,  any  stamp  so  removed, 
or  makes  any  fraudulent  use  of  any  stamp  for  fermented  liquors,  shall 
be  fined  not  less  than  one  hundred  dollars  nor  more  than  one  thousand 
dollars,  and  imprisoned  not  less  than  six  months  nor  more  than  three 
years. 

Section  3353,  Revised  Statutes,  provides  that — 

Every  person,  other  than  the  purchaser  or  owner  of  any  fermented 
liquor,  or  person  acting  on  his  behalf,  or  as  his  agent,  who  intentionally 
removes  or  defaces  the  stamp  or  permit  affixed  upon  the  hogshead, 
barrel,  keg,  or  other  vessel,  in  which  the  same  is  contained,  shall  be 
liable  to  a  fine  of  fifty  dollars  for  each  such  vessel  from  which  the 
stamp  or  permit  is  so  removed  or  defaced,  and  to  render  compensation 
to  such  purchaser  or  owner  for  all  damages  sustained  by  him  there¬ 
from. 

Collectors  will  compare  the  monthly  return  made  by  brewers  with 
their  own  account  of  the  stamps  sold  to  the  same  brewers,  and  will 
take  special  care,  when  applications  are  made  for  permits  to  remove 
fermented  liquors  from  one  collection  district  to  another,  to  satisfy 


TAX  ON  FERMENTED  LIQUORS. 


33 


themselves  that  no  fraud  is  intended,  and  that  none  is  committed,  in 
case  the  permits  are  granted. 

The  collector  will  take  suitable  measures,  including  seizure,  if 
necessary,  for  the  prevention  of  fraud  in  the  sale  and  removal  of 
fermented  liquor  alleged  to  be  unfermented  worts,  or  to  be  sour  or 
damaged. 

The  collector  will,  from  time  to  time,  examine  the  barrels  and  other 
vessels  used  in  the  sale  of  fermented  liquors,  to  see  if  they  are  prop¬ 
erly  marked,  as  required  by  section  3349,  Revised  Statutes,  as  well  as 
to  determine  if  their  capacity  is  greater  than  indicated  by  the  stamps 
placed  thereon,  and,  when  satisfied  that  the  Government  is  deprived  of 
its  just  amount  of  tax,  the  collector  will  report  the  fact  to  the  Com¬ 
missioner  of  Internal  Revenue,  when  the  deficiency  will  be  assessed 
and  returned  to  the  collector  on  the  monthly  list,  “Form  23.” 

Collectors  are  especially  directed,  either  personally  or  by  deputy,  to 
visit  breweries  and  make  examinations  thereof  at  other  than  stated 
times,  to  see  that  nothing  required  to  be  entered  in  the  books  is 
omitted,  and  that  all  the  entries  made  are  in  strict  accordance  with 
the  facts. 

Each  collector  will,  on  the  first  day  of  August,  in  each  year  here¬ 
after,  report  to  the  Commissioner  the  name  of  every  brewer  in  his  dis¬ 
trict,  arranging  the  names  in  the  list  in  alphabetical  order. 

Each  collector  will  furnish  every  brewer  in  his  district  with  a  copy 
of  these  regulations. 

Royal  E.  Cabell, 

Commissioner. 

Approved,  October  8,  1909: 

Charles  D.  Hilles,  Acting  Secretary  of  the  Treasury. 


. 

*•  : 


' 

•  * . 


■ 


?h  *r.: 


. 


INDEX. 


Page. 

Accident,  permit  in  case  of .  17 

Affixing  of  permits .  19 

stamps .  13-15 

Books  to  be  kept  by  brewer .  9, 10 

Bottling .  21,  22 

Brewer,  bond  of .  7, 8 

books  to  be  kept  by .  9, 10 

definition  of .  5 

notice  by  (27c) .  5,6 

qualification  of .  5-8 

returns  of .  10, 11,  20,  31 

Brewery  premises,  removal  of  liquor  from  unstamped .  18-21 

separation  from  bottling  house .  22,  23 

Cancellation  of  permits .  19 

stamps .  13-15 

Dealer  in  malt  liquors  defined .  6,7 

Exportation  of  fermented  liquors  in  bond .  31 

Gallon  defined . * .  5 

Marks  on  packages  of  fermented  liquor . 15 

Notice,  Form  27 c .  5,  6,  23 

Packages,  legal  sizes  specified .  3 

marking  of .  15 

Penalties . —  31,32 

Permit  to  carry  on  business,  case  of  accident .  17 

to  remove  liquors  unstamped .  18-21 

Pipe  lines .  23-31 

Cisterns .  24,  28 

Construction  of  pipe  line .  25,  26 

Locks  and  seals .  27 

Notice  by  brewer .  23 

Plan .  26,27 

Return  of  liquors  transferred .  31 

Stamps,  cancellation  and  disposition  of .  30,  31 

Supervision .  31 

Valve  in  air  and  gas  pipes .  26 

Returns,  Forms  18  and  18a .  10, 11,  20,  31 

Separation  of  brewery  and  bottling  house .  22,  23 

Sour  liquor  removed  unstamped .  20 

Special  taxes .  6,  7 

Stamps,  affixing  and  cancellation  of .  13-15,  30 

procurement  of . - .  12, 13 

Tax  on  fermented  liquors .  3-5 

Unfermented  worts .  20,  21 


o 


35 


